Rising health care costs spotlight supplemental health benefits’ value

Successful supplemental health benefits strategies require benefits advisors to work closely with their small and midsized business clients to show how these products address current financial pressures. Advisors also play a key role in educating employees about the benefits and simplifying implementation, administration and enrollment.

Addressing financial pressures with supplemental health benefits

Even with cost containment top of mind, employers want to provide high-value benefits that support employee well-being. Supplemental health benefits, including accident, critical illness and hospital indemnity insurance, can offer valuable financial protection for employees without increasing the company’s benefits budget.

Supplemental health benefits ease the economic pressures employees face during accidental injuries, serious illnesses or hospital stays. Employees can use the cash benefits (paid directly to them) for medical expenses not covered by traditional health insurance or everyday expenses like rent, groceries or child care.

“With inflation impacting everyday expenses, employees are seeking affordable, high value coverage,” Nadeau says. “Supplemental health benefits can help offer financial peace of mind, reduce stress and improve overall well-being.”

Educating employees on benefits

While supplemental health benefits offer clear value, The Hartford’s Future of Benefits Report reveals that 38% of employees do not understand the supplemental health benefits offered by their employer, and 34% do not purchase the coverages because they do not think they will need them.

Building employee understanding is crucial for maximizing the effectiveness of supplemental health benefit strategies. One key is explaining how the benefits address specific gaps, like out-of-pocket medical costs, unexpected expenses and lost income.

“Simplicity is essential for making benefits feel usable and real,” Nadeau says.

“The typical employee isn’t an insurance professional, so we shouldn’t expect them to decode policy language. At The Hartford, we focus on simplifying benefits communications by using plain language, providing user-friendly explanations and sharing relatable stories about how supplemental health benefits can provide a financial safety net.”

Optimizing employer and employee experiences

As the need for supplemental health benefits grows, employers – especially small and midsized businesses – need efficient ways to implement and manage them. The Hartford’s research reports that employers juggle an average of eight different HR responsibilities, making innovative tools and streamlined support critical.

Benefits advisors can help by recommending digital tools, such as enrollment platforms and decision support tools, which allow employees to compare plans, calculate costs and enroll online. These tools simplify the process and help employees choose benefits that meet their specific needs.

Digital solutions should be paired with a human touch from onboarding through claims, Nadeau adds. “Being tech-forward is essential, but human interaction is vital for providing the support people need, minimizing friction and increasing employee understanding and utilization of supplemental health benefits,” she says.

With health care costs continuing to rise, supplemental health benefits will remain a valuable financial protection element within competitive benefits programs. Benefits advisors and consultants can help employers see the role supplemental health benefits play, increase employee understanding and make them easy to implement, enroll in and manage.

1. Supplemental Health products (Accident, Critical Illness and Hospital Indemnity) are independent and do not coordinate with any other health coverage.

The Hartford Insurance Group, Inc., (NYSE: HIG) operates through its subsidiaries, including underwriting company Hartford Life and Accident Insurance Company, under the brand name, The Hartford®, and is headquartered at One Hartford Plaza, Hartford, CT 06155. For additional details, please read The Hartford’s legal notice at www.TheHartford.com.

Ann Clifford is a freelance writer who translates her background in financial services marketing into specialized content focused on employee benefits and small business topics.