Supplemental Benefits for Employer and Affinity Groups

What is supplemental benefits insurance?

Out-of-pocket medical expenses are rising,¹ which is a serious concern for employees and consumers in general. Supplemental benefits insurance, which can be offered as an added benefit by employers or affinity groups (associations, financial institutions, membership clubs and other eligible organizations), is an added layer of insurance that can help pay for expenses that standard medical health insurance policies may not cover. Many benefits are paid directly to the insured person who experiences a covered event. The payment can be used as the employee or member chooses, such as for medical co-pays, household bills, extra expenses, or a trip to celebrate a recovery milestone. Supplemental benefits insurance can also include travel protection coverage, helping manage costs associated with unexpected travel disruptions, sickness or injury.

Who needs supplemental benefits insurance?

As co-pays, deductibles, premiums and other medical expenses rise, individuals are seeking avenues to help them manage those costs. Even those with comparatively strong health coverage through their employer may find themselves hit with unexpected and sometimes very expensive costs, such as out-of-network bills for physician services. Through supplemental benefits insurance, employers and affinity groups can help their workers and members meet this challenge.

Why would a business or affinity group offer supplemental benefits insurance?

For employers, offering supplemental benefits insurance plans can be a way to attract and retain talent in an increasingly tight labor market. Workers have been leaving jobs in historic numbers over the last couple of years and dissatisfaction with benefits has been cited as one major reason.² For affinity groups, offering these kinds of benefits can be a real competitive advantage, showing existing and potential new members that they have their well-being in mind.