Rice Business Report May 2019 Rice Business Report | 页面 8

8
How Your Business And Workers Benefit From
Supplemental Insurance
By Calvin Johnson
As healthcare costs continue to rise, employers have started to shift the burden of health care costs
onto their employees. Some have even cut back on employer-paid benefits. The health-care law re-
quires most people to obtain and most employers to offer major medical coverage with certain essen-
tial benefits. Even so, what workers pay out-of-pocket through these plans keep rising as employers
try to control their own costs
A 2015 report revealed how employers are still looking for ways to reduce expenses by pushing costs
onto workers in the form of increased deductibles, premiums and copayments. By offering supple-
mental or voluntary insurance to employees, this can provide financial protection in the event of a se-
rious accident or illness. Three reasons why supplemental insurance is essential for employees are:
Healthcare cost increases are outpacing raises
According to a report, 31 percent of employers increased employees' share of premium, 30 percent
increased employees' copayments, and 21 percent implemented high-deductible health plans. Those
are big expenses hitting employees' wallets, but salary increases are not keeping up. A recent Kaiser
Family Foundation study found that deductibles have risen six times faster than workers' earnings
since 2010.
Out-of-pocket limits are high, even for higher-paid employees
The average out-of-pocket expense is approximately $7,000 for individuals and $14,000 for families,
and that is only for covered essential health benefits. Yet, a whopping 52 percent of employees have
less than $1,000 to pay for out-of-pocket expenses associated with an unexpected serious illness or
accident, and 28 percent have less than $500
Workers tend to choose price over quality, which may mean less coverage than they realize
With rising costs, it is tempting to choose health insurance based on the monthly price tag. In fact, 30
percent of employees say monthly premium is the most important factor when choosing a major med-
ical insurance plan each year. A lower-cost plan may mean short-term savings, but could eventually
add up to significantly higher out-of-pocket costs
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Rice Business Report