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Now Is the Time for Businesses to Offer Supplemental Benefits

Widespread inflation, high interest rates, rising health care costs, High Deductible Health Plans and other economic factors are brewing a financial storm that can be weathered with the right preparation. One type of protection you can offer your employees and their families is supplemental benefits.

These valuable and affordable coverage options can be the difference between paying for a large medical expense quickly or having that debt nag at an employee's wallet for months or even years.

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According to U.S. Labor Department data, the annual inflation rate in the United States is 8.3% for the 12 months ending August 2022.1 That's the highest rate of inflation in the U.S. than any year in the past two-plus decades by a wide margin.

What's more – according to a recent Gallup poll, the majority of Americans are worried about paying medical costs in the case of a serious injury or accident.2 Many U.S. workers need all the financial relief they can get right now. Supplemental benefits present a unique solution for benefits administrators and business owners to come to the aid of their employees.

Supplemental Benefits in a Nutshell

Supplemental benefits can be described as "voluntary" or "extra" insurance. Usually offered through the workplace, supplemental benefits can be used to help offset the high costs of medical care, hospital stays, medical transportation and equipment.

The most common types of supplemental benefits are:

  • Accident Insurance – pays benefits for medical treatment, services, hospital stays and more when faced with an accidental injury, such as a slip and fall.
  • Critical Illness Insurance – provides a lump-sum benefit when diagnosed with an eligible condition, like heart attack, stroke, certain cancers and more.
  • Disability Insurance – pays income replacement benefits when a covered person is sick or injured and cannot work.
  • Life Insurance – pays beneficiaries in the event of a covered person's passing and can also build cash value that may be borrowed against if needed.

You can boost your employee champion status by adding additional benefits that help your employees and their families stay healthy, like a Wellness Benefit. Each coverage type has optional benefits that enhance employees' protection while maintaining affordability.

The Supplemental Benefits Advantage

For Employers

  • Supplemental benefits can be 100% employee-paid
  • No effect on your bottom line
  • Helps to round out your benefits offering
  • Helps you recruit and retain top talent
  • Can help boost productivity in the workplace

For Employees

  • Benefits are paid directly to the covered person to use as they wish
  • Affordable group rates only available through the workplace
  • Individual and family coverage available
  • Works alongside any other medical coverage that the employee may have in place

Most supplemental benefits are compatible with Health Savings Accounts (HSA). If an employee elects supplemental coverage, they are not precluded from contributing to or creating an HSA.

It's important to know that supplemental benefits do not replace comprehensive health insurance and they do not satisfy the Affordable Care Act's requirement of minimum essential coverage—hence the term "supplemental insurance."

Give your employees the supplemental benefit options they need and deserve. Allstate Benefits can help. Connect with an Allstate Benefits representative or click here for a quote.

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