A recent survey of employers finds that many (49 percent) expect to add voluntary, employee-paid insurance benefits to their plans within the next year.
Colonial Life surveyed more than 750 human resource managers and benefits administrators at the and found many saying that regulatory and economic issues are forcing them to make changes in their employee benefit packages. The Colonial Life survey, according to insurance news net focused on asking about employee benefits packages and benefits communications efforts.
Other changes employers say they plan to make to their benefits plans within the next year include:
- Increasing employees’ health insurance premiums (51 percent)
- Increasing employees’ health insurance deductibles and/or co-pays (49 percent)
Results Similar to Past LIMRA Survey
In a past survey earlier in 2011 LIMRA also asked employers about their future use of voluntary benefits.
LIMRA found that participation rates of voluntary products have held relatively steady over the past four years, despite the struggling economy and more than 4 in 10 businesses were considering adding a new voluntary benefit within the next two years. In addition, the LIMRA survey found that employers who currently sponsored voluntary benefits are very satisfied with their programs.
In responding to the the survey Colonial Life results, Randy Horn, president and CEO of Colonial Life, told Insurance News Net, “Not surprisingly, employee benefits have taken a hit as companies wrestle with the rising cost of providing health coverage to their workforce."
Employers in their survey response also said benefits education is important … but are they doing a good job at it? Virtually all employers (99.6 percent) surveyed agree their employees need guidance to make sound benefits decisions and education to help their workers understand changes in their benefits program. Yet only a quarter of employers (23 percent) believe their company’s current benefits education efforts are very effective.
“Employers see a need for more and better benefits education and communication,” says Horn. “Providing personal, one-to-one benefits counseling can close the communications gaps that often hinder employees from fully understanding and appreciating their benefits.”
Voluntary Benefits Basics
Voluntary benefits are insurance products that employees may choose to purchase through their companies at rates that are lower than they could get on their own. A few examples of voluntary benefits are dental, vision, life (mostly term), accidental death and disability, disability (short and long-term), supplemental health (i.e.- specified disease, critical illness, hospital only, etc.) and cancer insurance. Many employers offer voluntary benefits because they allow companies to provide a more robust benefits package at no cost to them.
Additional Voluntary Benefit Offerings
Typical examples offered through a voluntary benefits plan include: gym membership, retail vouchers, CDs, DVDs, travel insurance, holidays and travel, entrance to theme parks and other attractions, cinema and theatre tickets, and car parking.
How do voluntary benefits work for employees?
For an example of how voluntary benefits work we’ll need our good friends Gary and Greta. Tonight, they’re going to a restaurant for dinner. Gary and Greta’s entrées include soup and salad with the price of their meals. In this case, their meal is like their company’s health plan – they get what they want along with a few added extras. Hopefully, their food tastes better than their health plan.
Employer Advantages
Offering voluntary benefits to employees provides a great incentive for people to stay with your company. Your employees can receive more benefits – and you don’t pay any extra. You’re also helping your employees protect their health, their savings and everything they’ve worked so hard to achieve. As an added bonus, offering voluntary benefits provides the opportunity to lower your payroll taxes with each enrolled employee.
