Growth in voluntary benefits
New trends in the demographic, economic and social landscape of the U.S. are emerging with a significant impact to the workplace. These trends are driving change, from how businesses recruit and incent workers to how they fund benefits. The changing workforce climate and how businesses are responding include the emerging trends in the offering of voluntary benefits.
Voluntary benefits such as Short-Term Disability, Critical Illness, Cancer, and Accident are not intended to replace medical coverage, but to provide additional coverage to help meet out-of-pocket costs.
Reasons for your employees to buy this coverage at work
Affordable rates when bought through the employer, and employees own their policy(ies) so they can keep them even if they leave the company or retire.
Growing Need for Long Term Care Insurance
The need for long term care insurance is increasing as the baby boom generation reaches its elder years. The Bureau of Labor Statistics shows a steady rise in the percentage of employees with access to long-term care (LTC) insurance. In 1989, LTC was offered to just 3% of full-time employees of large, private industry employers; by 2006, that figure reached 20%.16
Source: Serving Up Small Business: Marketing Insurance and Employee Benefits to the Small-Business Market, LIMRA International, 2006.
Individuals currently turning 65 will need long term care for an average of three years before they die. One in five will need care for five years or more. Voluntary plans help companies to contain benefit costs while balancing the need to reward and motivate employees according to their individual needs.
The Rise of Consumer-Driven Health Plans
As employers search for ways to contain healthcare costs, they are considering various health plan designs. One that has gained much attention is consumer-driven health plans (CDHPs). This plan design follows the idea that if employees take on more financial risk for their health care, they will become more responsible consumers. Through these plans, employees are provided with resources that explain cost and quality, and they’re given access to wellness and disease management programs, health information and coaching. In some cases, employees are offered a savings device to help them pay for care before they reach the deductible. Most often, consumer driven health care involves plan designs with high deductibles.
Disease Management and Wellness Programs
Employers are turning to initiatives such as disease management, care management and wellness programs to help them curb medical and disability expenses and increase productivity.
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