- 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.
- 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.
- 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.
- 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!
- 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.