Why should employers offer non-insured benefits to their employees? Here are some important reasons

  1. Create Continuity– Not all employees are eligible for or enrolled in their company’s health plan. Employees across the workplace may waive coverage, have a different 1099 status, or live in a different state/country with an unequal level of coverage. If the insurance plan includes telemedicine, only those enrolled in the plan have access. When these services are added as non-insured benefits, all employees can use them regardless of enrollment status, bridging the gaps and creating continuity across the program’s reach.
  2. Differentiate Employee Access–Some employers may offer to pay for access to telemedicine and/or healthcare cost transparency tools as an incentive to participate in self-funded medical plans. They can also make this benefit available through payroll deduction for those who waive medical coverage.
  3. Address Part-time/1099 Employees– Part-time and contract employees are just as critical to a company’s success as full-time employees, and even though their numbers are increasing, they don’t have the same access to benefits. The flexibility of non-insured benefits allows employers to offer part-time employees savings on dental care, vision, prescriptions, and other healthcare expenses. This flexibility extends to funding options, like direct pay or payroll deduction.
  4. Minimize the “Cost Shift”– As employers implement High Deductible Health Plans (HDHP) and/or increase PPO deductibles as a way to reduce healthcare spend, employees and their dependents face significant out of pocket costs every year. The average annual deductible for all covered employees is over $1,200, and over $2,000 for those with a HDHP. Prescription drugs are one of the biggest cost issues, with employees sometimes paying $100 or more for their prescriptions under their insurance plan. A pharmacy discount program can offer savings between 10 and 85%. For example, an employee enrolled in a HDHP where prescriptions are subject to the deductible, and a prescription for codeine cough syrup can cost $80, it’s only $40 with a pharmacy discount program. Alternative saving options empower employees to make every dollar count!
  5. Fill the Gap
    Traditional ancillary benefits like dental and vision insurance have their limitations. They’re subject to a benefit schedule with a maximum use cap, leaving any additional services in that calendar year to come out of pocket. And because these often-expensive benefits are usually offered on a voluntary payroll deduction basis, many employees choose not to enroll. Non-insured discount dental and vision plans can be a terrific gap-filler. Employees can save hundreds of dollars on services, whether they’re using the discounts in place of insurance or after reaching their maximum. Instead of paying $100 for a dental cleaning, a discount dental program could save an employee 15 and 50%* per visit, in most instances.

 

*Actual costs and savings vary by provider, service, and geographical area. Copyright © 2019 New Benefits, Ltd. All rights reserved.