| Group health insurance costs have been rising rapidly. | | | | appropriate medical treatment may not recover as |
| What is most frustrating is that there is little an | | | | quickly, further impacting productivity. |
| employer can do to control these expenses. | | | | Raise Premiums or Cut Benefits |
| Employers have begun cost sharing programs with | | | | Many employers hands are tied. Health insurance |
| employees, along with migrating towards consumer | | | | premiums have risen so high they have no choice but |
| directed plans: policies that leave the employees | | | | to strip benefits out of insurance programs in order to |
| exposed to higher deductibles, co-insurance etc. | | | | control costs. These sometimes lead to a |
| These consumer directed plans come with lower | | | | one-size-fits-all approach to choosing a health benefits |
| premiums. The lower premium costs work well for the | | | | plan for employees. Every employee situation is unique, |
| majority of employees who remain healthy during the | | | | so this approach is sure to fall short. |
| plan year. They may be especially appealing to | | | | Healthy employees with a financial cushion may have |
| employers who subsidize the majority of premium | | | | a greater risk tolerance and may find a lower cost |
| costs. | | | | plan ideal. Meanwhile those employees living on the |
| Consumer Directed Health Plans Leave Holes for | | | | edge may need a greater level of security. |
| Employees | | | | Voluntary Employee Benefits Fill Holes and Create |
| But what happens when employees get sick or hurt | | | | Choice |
| while enrolled in these consumer directed plans? | | | | Voluntary employee benefit programs give employees |
| Unfortunately, many employees don't have the financial | | | | greater choice and flexibility in choosing an appropriate |
| cushion needed to absorb these additional unplanned | | | | level of coverage while saving on group health |
| expenditures to meet the higher deductibles and | | | | insurance premium rates. Flexible spending accounts |
| co-insurance. An estimated 60% of U.S. households | | | | allow employees to lower costs for predictable |
| have little or no savings and live check to check. An | | | | un-reimbursed expense with tax savings. Supplemental |
| increase in expenses coupled with a loss of income | | | | insurance addresses the need for extra resources for |
| can be devastating to employees in this situation. | | | | unexpected accidents and illnesses. |
| Employees in dire financial straits cost employers | | | | Premium costs remain low for the employer, while |
| money in increased absenteeism, and lost productivity. | | | | employees can create a benefits package suited to |
| Also, employees who lack the resources to get | | | | their individual needs. |