Feb 02 2008
Need Employee Benefits? Don’t Overlook Supplemental Insurance Plans
I was watching the Presidential debates the other night, and health insurance is still at the top of the “things to do” list. What a mess!
I earned my health insurance license years ago, and began the process of getting appointed with certain life and health insurance carriers. I saw the Aflac commercial and after figuring out what that duck does, decided to include it in my offerings.
For those of you who aren’t familiar with Aflac or supplemental insurance policies, here’s the main benefit. Health insurance makes sure the doctors and the hospitals get paid for the services they provide. But when you’re missing work for treatment on things like sickness, accidents, or even cancer- how do you recoup income lost? The answer is supplemental insurance. These policies pay you cash for unexpected health events like a broken arm, emergency room visits, cancer, even gas and lodging benefits if treatment is out of the area.
An accident policy, for example, pays you a specified cash amount for things like stitches, broken bones, chipped teeth, burns, etc. In fact, about any kind of accident you can imagine going to the hospital, walk-in clinic, or doctor for- they will pay you a specified cash amount.
Yes, it is not health insurance and it usually won’t be enough to pay for that doctor’s visit. But unlike health insurance which costs hundreds of dollars a month, this type of policy will range from just $20-$30 dollars a month. The cash benefits are very good, and once you send in your bill for the service you received, you can expect a check back in matter of days.
I have found over the years these supplemental insurance policies are especially great for small employers who can’t afford the high costs of group health insurance. It’s also a good option for blue-collared employers who deal with employee turnover- which leads to participation issues.
The benefits for employers are significant, as well. First, as the employer you’re not required to contribute to a plan. Second, you don’t have the participation factors - you typically only need as little as three employees who purchase a policy to have a group plan. Third, by offering these supplemental insurance policies, you more likely to experience a drop in workers’ compensation claims.
Why? Statistics show the majority of workers’ compensation claims are filed by noon on Monday. That’s because many claims arise from an accident that happened over the weekend- like an employee jet skiing or playing softball. Without health insurance, a percentage of people wait until they get to the workplace to report the accident as being work-related. With supplemental policies, the insured has an incentive to treat the accident immediately.
The benefits of supplemental insurance are well worth looking into. In addition to costs, participation factors, and ease of use- your employees will be grateful to you for the presentation alone. What experiences have you had with supplemental insurance?
Please call if you have questions regarding employee benefit options for your business. We can be reached at 888-582-8388 from 8:30am- 5:30pm EST. Or log onto Employee Leasing Quotes and get your free, specialized quote for your business.