Worksite benefits, also known as lifestyle protection plans, are employer-sponsored plans that can help employees cover expenses they may incur due to an unexpected illness or accident.
Worksite benefits, when sponsored by employers, have attractive group rates and low participation requirements. Examples of worksite benefits include Accident Insurance, Specified Disease/Critical Illness and Hospital Indemnity Plans.
As out-of-pocket costs for medical expenses continue to trend upwards, more employers are adding voluntary Worksite Benefits options to their benefits packages. Enhancing your benefit offerings with Worksite Benefits provides your employees the opportunity to purchase plans, via payroll deduction, that manage their out-of-pocket risk for the unexpected.
How Worksite Benefits Enhance Your Employee Benefits Package
No one ever plans on having an accident, most people don’t anticipate a critical illness or a hospital stay, yet it can happen to anyone at any time. A Worksite Benefits plan can provide your employees with peace of mind in the event of an unforeseen accident, catastrophic illness or hospitalization. Funds from the plan can be used for any expenses—not just healthcare costs.
Accident insurance is coverage that pays for expenses related to accidents. The plan design includes a pre-determined fee schedule that reimburses for incurred treatments and services following an accident. Payments are paid to the policy holder based on the schedule, not actual incurred costs. Examples of covered expenses include urgent care/ER visits, follow-up visits, physical therapy, ground and air ambulance services, x-rays, diagnostic exams and inpatient hospital admission, among others. Depending on the carrier and plan design selected, there may also be an increased benefit covering children injured while playing organized sports.
Specified Disease/Critical Illness pays a benefit based on each eligible diagnosis. When an employee or covered family members is diagnosed with a serious illness/medical event such as a stroke, cancer or heart attack, a lump sum payment is paid to the employee to help with expenses. This money can be used to help with any expense the covered member needs, from helping with lost wages to covering incurred medical costs—which can be particularly attractive to those employees on very high deductible health plans. At the time of enrollment, employees choose a lump sum benefit amount in increments of $5,000 based on their anticipated risk/coverage needs. Rates are based on the employee’s age. Certain plan designs include a wellness benefit that will provide a payment once per year assuming certain routine wellness screenings or procedures are completed.
Hospital Indemnity plans pay a benefit upon initial admission to the hospital and continue paying a daily benefit in the event that an employee is confined to a hospital due to sickness or injury. This can be helpful to offset out-of-pocket medical costs associated with a hospital stay, as well as other expense demands that may result from the hospitalization, such as lost wages.
Many employees may think that if they have medical insurance then they have no need for additional policies; however, medical insurance may include large copays or deductibles. Additionally, many employees don’t realize the potential income loss they may experience due to an accident, critical illness or hospital stay—even if they have disability income coverage. Do your employees have enough saved to cover unexpected medical expenses? Lost wages? Help them manage their out-of-pocket exposure by offering a robust and well-rounded benefit program including Worksite Benefits.
These plans are guaranteed to issue coverage at group pricing when offered the first time through an employer group. They are portable and conveniently paid for through payroll deduction. Talk to your Account Manager today to see how you can enhance your benefit package and help your employees have a financial safety net against potential future expenses.