Many employers are turning to Consumer Driven Health - a high deducible medical plan paired with Health Savings Account (HSA) - to control the costs of medical insurance. Consumer Driven Health is a popular solution as it enables employers to achieve dual goals of cost savings without reducing benefit levels. However meeting these goals depends on driving participation in the high deductible medical plan.
The Guardian Life Insurance Company of America recently conducted research with medical plan participants about their attitudes towards high deductible health plans. While members are pleased to save money on payroll deductions, the high deductible can pose a significant emotional barrier to enrollment. Even when the employer contributes to employee HSAs, employees worry about what would happen should they be faced with major medical expenses - an accident or serious illness - before they have time to accumulate funds in their HSAs.
Guaranteed issue Group Critical Illness coverage can be the solution. For just 2% - 3% more, employers can offer their employees a benefit that is paid upon diagnosis of certain critical illnesses or extended hospital stays for any other reason. The lump sum critical illness payment can be used any way the insured chooses. No reimbursement forms are required and since there are no restrictions as to how the money can be spent, participants can use the money to help meet their deductibles - or for anything else. Employees were reassured when presented with a high deductible medical plan packaged with an HSA and a Critical Illness benefit. Employees agreed that the combination of benefits alleviated their concerns about the deductible and they would be much more likely to enroll.
To download an overview of Guardian's research with employers and plan participants, visit www.guardianbenefits.com. To find out how Guardian can help you meet your clients' benefit needs, call your local Guardian Group office.
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From the May 2009 issue of Benefits Selling Magazine • Subscribe!
