As Health Insurance premiums continue to rise, you might want to consider a switch to a lower cost plan. In an effort to keep expenses manageable, many employers move to Silver or Bronze tier plans in order to access more affordable premiums. Or, perhaps you already made that move last year. Either way, your employees might experience an uncomfortable sticker shock when they realize that their new deductible has now risen.
Bronze and Silver tier plans can be more affordable for employers, because they offer lower premiums. But the trade-off for these lower premiums is a higher deductible, usually ranging between 1,000 and 6,000 dollars. It can be difficult for many workers to afford these high deductibles, and they will often experience frustration as they must pay for many healthcare services out of pocket before their insurance kicks in to help them afford the rest.
For Bronze or Silver tier plans, your employees will pay 40 or 30 percent of their own healthcare costs, respectively, with the health insurance company picking up the remaining tab. That might not be such a bad deal for those who are lucky, and don’t experience serious health crises. But for those who experience accidents or hospitalizations, the cost can become a significant burden.
If you’re considering a switch to a lower-tier plan in order to save money on premiums, you might be concerned about your employees’ reactions to your decision. And of course, you are concerned with whether they can cover their out-of-pocket expenses in the event of a serious illness or accident. You might consider offering voluntary accident or hospital insurance as an extra add-on, to help your employees manage expenses in the event of high medical bills. These plans can bridge the gap if your workers experience a costly medical emergency, by offering cash payments to help your employees pay for copayments, deductibles, transportation expenses, and even childcare costs during their recovery period.
For more information on accident or hospital insurance plans, give us a call. We can help you identify the solutions that work for your business, and provide you with information that you can pass on to your employees.