The health insurance landscape has experienced massive changes in recent years. As health care costs have increased, so, too, have the costs of providing health coverage to people all around the country. Many insurance companies have passed on those increased costs to those they insure so that premiums remain reasonably affordable. As a result, high-deductible health plans that used to be few and far between are quickly becoming the standard.
Because of this, people have had to shoulder a much more significant financial burden for their healthcare; this has led to the rising popularity of supplemental benefits, which can help you pay for medical costs not covered by your primary health insurance.
What Are Supplemental Benefits?
Supplemental benefits are secondary insurance policies that help people pay for medical costs not covered by their primary health insurance plan; this can help cover any out-of-pocket expenses you must pay under your health plan.
Many health insurance plans today come with hefty deductibles of a few thousand dollars. As a result, people with these plans must pay every cent of their medical care until they meet that deductible amount with few exceptions.
The supplemental benefits pay people with cash to help them cover certain medical expenses such as doctor’s visits, treatments, testing, and procedures. Some supplemental plans will also help people pay for everyday expenses such as childcare and groceries if they cannot work due to an injury or illness.
Who May Need Supplemental Benefits?
Today, supplemental benefits could be a good idea for many people. If you have a high-deductible health plan, it could be especially beneficial to help you reduce out-of-pocket medical costs.
A simple analysis is to look at the deductible and out-of-pocket maximums for your current health insurance plan and then ask yourself: If you were forced to pay that entire amount each year in medical costs, could you afford it?
For instance, if your deductible is $4,000, could you afford to pay $4,000 in medical costs per year on top of your monthly premiums? If your out-of-pocket maximum for that same plan is $8,000, could you afford to pay that amount per year on top of your monthly premiums?
If the answer to either of those questions is no, then supplemental benefits would be worth considering. Remember that one accident, illness, or injury under your plan could easily make you responsible for that much money.
A broken leg that requires surgery or an illness that requires a relatively lengthy hospital stay could very quickly see you reaching your deductible and out-of-pocket maximums for the year.
Where Can You Get Supplemental Benefits?
With healthcare costs rising every year, it is becoming more common for employers to offer supplement plans as part of their overall benefits package.
If you are an employer and you don’t currently offer a supplemental plan, it is something to seriously consider. You could offer these plans to your employees without having to shoulder much cost, and it would engender good feelings from your workers.
How Much Would Supplemental Benefits Cost?
Unfortunately, it’s tough to say how much supplemental benefits would cost. The premiums you would pay for these plans would vary greatly depending on what the plans will cover, what the payout structure will be, what the maximum payout will be, and your location—among other factors.
That being said, even the best supplemental benefits plans have considerably less expensive premiums than your primary insurance plan.
Beckham Insurance Group Has You Covered
Today, it is essential for employers to offer their employees the best benefits package that they can. In the ultra-competitive job market that we are in—and the fact that employees value compensation in other forms besides salary—a solid benefits package could be the difference in attracting and retaining talented workers and having trouble filling spots.
With health insurance becoming so expensive today, employers can take care of their employees by offering supplemental benefits to help fill the gaps in high-deductible health plans.
Beckham Insurance Group is a trusted benefits company that helps employers in Georgia and South Carolina create personalized benefits packages that fit their workers. Contact us today to find out how offering a supplemental benefits package can benefit you!