Employers Benefit From Supplemental Health Insurance Offerings
A new study indicates that three supplemental health benefits can improve employee retention and shield workers from unexpected medical expenses.
Employers offering accident, critical illness, and hospital indemnity insurance are seeing significant advantages, according to a recent study.
A survey by the Employee Benefit Research Institute (EBRI) and Lincoln Financial found that 86 percent of employers who provide all three types of supplemental health benefits report a positive impact on employee retention. Additionally, 46 percent of these employers noted a positive effect on absenteeism.
The study, which surveyed 408 employers and 1,130 employees, highlighted that many workers select only basic benefits during open enrollment without thoroughly reviewing other options. This is partly because employees spend an average of less than four hours examining benefit plans and feel financial pressure, leading them to choose the most economical choices.
Supplemental insurance provides employees with a safeguard against unexpected and potentially catastrophic healthcare costs. Nearly half of employees reported experiencing medical events in the past five years, with only a small portion feeling very prepared for unforeseen medical expenses. Offering these benefits can therefore reduce employee financial strain and enhance their job satisfaction.