With rising healthcare expenses, employers are finding it easier to shift this burden on their employees. Few even have started to reduce employer paid benefits. According to existing healthcare law, employers are required to provide their employees with major medical coverage and certain essential benefits. However, the out of pocket expenses of the workers through these plans only are found to increase, while employers take measures to control their costs.
According to recent reports, employers are still trying to find out ways and means to cut on expenses further by pushing costs to their workers like increased copayments, premiums and deductibles. Offering voluntary or Medicare Supplement plans to employees, they can offer financial protection to take care of serious illnesses and accidents.
Why employees find Medicare Supplement plans beneficial?
- Raises outpaced by rising healthcare costs: There have been recently witnessed increased employees copayments, share of premium and high deductible health plans. These big expenses do hit the employees’ wallets, however, salary increase is found inadequate. Deductibles only have risen 6 times faster when compared to workers’ earnings.
- High out of pocket limits: For individuals, the average out of pocket expenses is approx. $7k, while for families, it is $14k. These are only for those essential covered health benefits. still 52% of the employees are found to have lesser than $1k to pay out of pocket expenses related to unexpected accident or serious illness, while 28% have lesser than $500.
- Price over quality: This may mean lesser coverage on 2019 Medicare Supplement plans than what is desired. It is quite natural for people to get tempted to buy the low priced supplement plans. Monthly premium to be paid is indeed an important factor for many, when selecting Medicare Supplement plans. Low cost plan will mean short term savings. However, it will eventually lead to significant high out of pocket expenses. Employees do require adequate financial safety net. The benefits derived from supplemental insurance have proved to be a savior to protect employees when they are injured or sick, irrespective of major medical insurance coverage.
Few benefits do include dental, vision, short term disability, critical illness, accident, hospital indemnity, etc. Money received from such products can help the supplemental benefit recipients to pay their living expenses like mortgage payments, rent, groceries, medical bills, etc. With companies adding voluntary products to benefits package, they do raise employee satisfaction level. At the same time, employers do experience lower operational expenses, thus saving precious money.