Creating a post-reform benefits strategy
It’s expected that the cost of health care insurance will continue to rise. In fact, employers say health premiums will increase by another 7.2% in 2012 — nearly twice the rate of inflation.
As a result, nearly two-thirds of employers surveyed expect to use a wider variety of cost-sharing strategies:2
53% plan to increase the percentage that employees contribute to the premiums
39% plan to increase in-network deductibles
73% will offer employees at least one consumer-directed health plan in 2012, an increase from 61% offering a CDHP in 2011
The supplemental safeguard
These strategies can help businesses effectively manage costs, but they may leave employees financially vulnerable. In today’s challenging economy, a single illness or injury can have a profound impact:
41% of working age adults report they have had to go without medical treatment due to costs.
40% say they are having trouble paying off medical bills.
That’s why supplemental health benefits — particularly accident and critical illness — are growing in popularity. These 100% employee-paid plans make it simple for employees to choose the important coverage they need, with little or no impact to the company budget.
No impact on “Cadillac tax”
These benefits are also reform-friendly for employers. As long as the benefits are HIPAA-excepted, the premium is not part of the calculation used to determine whether a health plan exceeds the “Cadillac” excise tax threshold.
That tax, scheduled to begin in 2018, will place a 40% excise tax on plans with premium that exceeds set government thresholds. It will be levied on insurers (or, in self-insured plans, directly on employers). It is anticipated that insurers will pass some of this tax expense onto their customers.
77% of employers surveyed say they are somewhat to very concerned about this pending tax.5
These Unum benefits are all HIPAA-excepted. Click on the benefit to learn more.
Accident
Critical illness
Disability
Life
MedSupport
