Low-income workers facing serious illnesses are particularly vulnerable. Among the factors at play:

• As companies shift costs, many employees now pay a higher portion of premiums, taking a bigger bite out of paychecks.

• To lower the cost of premiums, many plans have high deductibles, creating an insurmountable barrier to care for some individuals and families.

• High co-pays and total out-of-pocket expenses pose the same issue as high deductibles.

• Skimpy benefits also pose problems.

According to April 2015 statistics from the Federal Reserve, U.S. Census Bureau and the Internal Revenue Service, the average American household income is $43,000. In addition, the average family has only $3,950 in savings, and 25 percent of families have no savings at all. Therefore, medical claims from high deductible plans could easily exhaust savings and lead to the accrual of debt.

There is widespread evidence that the cost of health care for consumers has already become unmanageable. According to a 2013 study conducted by NerdWallet, a San Francisco company that provides resources to help consumers make financial decisions, three of every five bankruptcies are due to medical bills.

Studies also indicate that people who are underinsured tend to have plans with deductibles of $5,000 or more. But even an individual with a $3,000 deductible who is not considered underinsured might hesitate to have a medical procedure if faced with several thousand dollars in out-of-pocket expenses.

With consumers assuming a greater share of rising health care costs, that trend is unlikely to shift unless employers can help employees relieve their burden. In a world that has been laser-focused on health insurance, the importance of coverage by other plans is suddenly moving toward center stage.

Cadillac tax drives change

Developed as part of PPACA, the Cadillac tax is designed to reduce health care usage and costs by asking employees to share more of the expense and steering employers toward cost-effective plans without lots of extras.

Meanwhile, as things currently stand, if an employer exceeds the limits, it must pay a hefty 40 percent excise tax on contributions over the threshold. For example, if a company pays $11,200 toward an individual's coverage, the company would be taxed $400 ($1,000 above the threshold multiplied by 40 percent). A business with 100 employees receiving such individual coverage would incur a nondeductible tax of $40,000. Obviously, the incentive to spend within the limits is significant.

In essence, PPACA created a floor for the design of health insurance plans—employers must offer certain basic coverage or face penalties. Now the Cadillac tax will create a ceiling. Those who exceed it also will be penalized. As a result, in less than three years, health insurance will become commoditized—one medical plan will look very similar to another. To attract and retain talent and distinguish their companies from competitors, employers will begin turning to voluntary and supplemental coverage to differentiate their benefits package. Importantly, costs for these plans are not factored into the Cadillac tax.

Integrated benefits: A strategy for transformation

Integrated benefits offer a holistic approach to meeting employees' needs by looking at the big picture. It identifies gaps to fill if an accident or major illness occurs, then offers a way to bridge the divide. The concept is similar to the way Medicare and Medicare supplemental plans work together.

For instance, if a health plan has a high deductible or high out-of-pocket expenses, first dollar benefits from hospital indemnity, critical illness or accident plans limit employee risk. In addition, the payout from a critical illness plan could begin immediately upon diagnosis but before treatment commences, helping the insured not only with financial challenges, but also offering the opportunity to seek a second opinion or obtain superior care in other markets. An employee with a $5,000 deductible and a potential $12,000 claim would be more likely to seek proper health care if supplemental coverage significantly reduced the amount of money he or she would have to shell out. 

Emerging supplemental products are the same as their predecessors in name only. The newer generations of plans are designed with much greater focus on providing true value to those enrolled. Another silver lining: Unlike health insurance, prices for these products are often fixed; rates don't rise considerably from one year to the next, which stabilizes costs over a period of time.

As employers seek better solutions, integrated benefits plans make it possible to improve total coverage. Another consideration: As market demand increases for these plans, carriers are likely to develop new products and options, enhancing their appeal. 

Traditionally, these types of benefits have been offered on a voluntary basis, meaning they are available at group rates through an employer, but the employee pays the entire premium. However, as companies begin to craft new benefits packages to differentiate themselves from other places of employment, many of these plans may become supplemental, with employers paying all or a portion of the costs. Some may offer benefits "allowances," enabling members of the workforce to select the types of coverage that are most meaningful to their circumstances. For example, the needs of a family with active children are different than empty-nesters approaching retirement.

Another essential point is that vision and dental coverage are not impacted by the Cadillac Tax. These plans are important because they deliver other valuable ways to reduce employee expenses. However, they don't have the same ability to offset the gaps created by high deductibles, co-pays and out-of-pocket costs related to health insurance. In addition, if businesses really want to be holistic, they also should factor disability (short- and long-term), life insurance (term and whole) and long-term care insurance into the mix.

Ideally, integrated benefits looks at benefits the same way employees do: How can I protect myself financially if something unexpected happens? During the last couple of decades, the focus of employee benefits has been primarily on health insurance. As we move forward, insurance will remain the center of attention, but other benefits will gain greater importance. Advisors who begin guiding their clients now to successfully navigate this terrain stand the greatest chance of success.