5 Reasons Why Supplemental Health Insurance is a Must-Have for Your Employees

5 Reasons Why Supplemental Health Insurance is a Must-Have for Your Employees

If you're like most employers, you're always looking for ways to attract and retain top talent. One way to do that is by offering a robust benefits package, which includes supplemental health insurance. Supplemental health insurance plans help cover the gaps that can exist with your traditional health insurance plan, and can provide your employees with the extra financial protection they need. In this article, we'll explore five reasons why you should consider offering supplemental health insurance to your employees.

Cost-Effective Coverage:
Supplemental health insurance is a cost-effective way for employees to get additional coverage. Traditional health insurance plans may not cover certain medical expenses, such as co-pays, deductibles, and other out-of-pocket expenses. Supplemental health insurance can help bridge this gap, which can help relieve the financial burden for your employees. This, in turn, can make them happier and more satisfied with their job.

Customizable Plans:
Supplemental health insurance plans are flexible and customizable, allowing employees to choose the coverage that best fits their needs. They can choose from a variety of plans, including dental, vision, disability, and critical illness coverage. This allows your employees to tailor their benefits to their specific needs, which can lead to higher satisfaction rates and better retention rates.

Peace of Mind:
Supplemental health insurance plans can give your employees peace of mind, knowing that they have extra protection in case of an unexpected medical event. This can help alleviate some of the stress and anxiety that can come with medical bills, making your employees happier and more productive.

Tax Savings:
Supplemental health insurance plans can offer tax benefits for both employers and employees. Employers can often deduct the cost of supplemental insurance premiums as a business expense, while employees can pay for their coverage with pre-tax dollars, which can lower their taxable income.

Competitive Edge:
Offering supplemental health insurance can give your organization a competitive edge in the job market. A robust benefits package, including supplemental health insurance, can help attract top talent and keep your current employees happy. This can ultimately lead to better recruitment and retention rates, which can save you time and money in the long run.

In addition to these five reasons, here are some statistics and examples that further support the value of offering supplemental health insurance:

According to a survey by Willis Towers Watson, 86% of employees say that having health and wellness benefits is important in deciding to stay with their current employer.

In a study by Colonial Life, 82% of employees say that they would like to have more health and wellness benefits than they currently have.

When it comes to offering supplemental health insurance, some companies have seen impressive results. For example, Best Buy has been offering supplemental insurance for over a decade. During that time, they have seen their turnover rates drop by over 10%, which translates to significant cost savings.

Aflac, a leading provider of supplemental insurance, found that employees who had access to their supplemental insurance plans were 1.4 times more likely to stay with their employer than those who did not have access.

In a survey by The Hartford, 70% of employees said that they would be more likely to stay with their employer if they had a wider range of benefits to choose from.

According to a survey by MetLife, 60% of employees say that benefits are a major factor in their job satisfaction.

In a study by Harvard Business Review, it was found that companies with a strong benefits package had higher productivity rates and lower healthcare costs.

All of these statistics and examples point to the fact that offering supplemental health insurance can have a significant positive impact on your employees and your organization.

In conclusion, offering supplemental health insurance to your employees is a cost-effective way to provide extra financial protection that is customizable to each employee's needs. It offers peace of mind, tax savings, and a competitive edge for your organization. Additionally, it has been shown to lead to higher employee satisfaction rates, lower turnover rates, and higher productivity rates. Consider adding supplemental health insurance to your benefits package and see the positive impact it can have on your workforce.

Hunter Shepherd is the President of Kennion Benefit Advisors, where he helps employers across the country navigate the tricky world of employee benefits. With over 15 years of experience in the industry, Hunter knows all the ins and outs of saving you money and keeping your employees happy. Want to chat about your benefits over a cup of coffee or a phone call? Give Hunter a shout at 205-641-0469. Yep, that's his cell phone!