Perfect match: accident insurance and health coverage

Anyone who’s been married, been in a wedding or even just been to a wedding knows these events can rack up some hefty expenses: The gown. The reception. The honeymoon. The emergency room.

OK, that last item probably doesn’t appear on most wedding planners’ checklists, but Sean Williams knows better. A video producer here at Colonial Life, Sean had barely left town for his wedding trip recently when he and his new bride got a call saying Sean’s step-son had broken his ankle playing football.

The bills for that emergency room visit, doctor’s care and follow-up treatment could have been almost as painful as the accident itself, except for one thing: an accident insurance plan Sean bought years ago through his workplace. Fortunately, it was a family plan he’d chosen to help protect his two active children from a first marriage. Thanks to a couple of “I dos,” the plan also covered his new step-son.

Growing family, growing need

Marriage, starting a family (or acquiring a ready-made one) can point out the need for additional insurance coverage — including accident protection. The National Safety Council reports every 10 minutes, nearly 750 Americans suffer an injury severe enough to seek medical help — that’s 39 million people every year (Injury Facts, 2017). Broken bones are common. In fact, fractures and dislocations are a leading cause of claims on our accident insurance plans.

Active families with children in sports are especially vulnerable to the rising costs of medical treatment for injuries. The top causes of sports-related injuries treated at the ER include football, basketball, soccer and bicycle riding, according to the National Safety Council. Even plain-old “exercise” makes the top-five list. Clearly, anyone, young or old, could suffer an accident at any time.

Love is priceless: accident care isn’t

Even with the best major medical coverage, out-of-pocket costs for accidental injuries can add up quickly. An emergency room visit can cost several hundred dollars. Depending on the treatment, diagnostic tests and lab fees needed, the bill could total several thousand dollars. Accidents requiring follow-up treatment — removing a cast or physical therapy, for example — often involve additional costs for co-pays or coinsurance.

And employees with high-deductible health plans will be responsible for many of those expenses before their medical plan kicks in. Those plans — which require deductibles of at least $1,350 for an individual and $2,700 for a family —  are increasingly popular as employers scramble for solutions to control rising benefits costs.

You’ve likely recommended that option to your clients to keep premiums affordable while still meeting their desire to offer their workers health coverage. If so, you’re in good company. Mercer’s 2017 National Survey of Employer-Sponsored Health Plans found that 46 percent of employers planned to take steps to reduce cost growth this year, such as offering lower-cost, high-deductible health plans.

While HDHPs do offer the benefit of lower premiums up front, they also increase the potential financial exposure for employees. In fact, Milliman’s 2017 Medical Index found an average family has more than $4,500 in out-of-pocket medical costs each year. And more than half (55 percent) of Americans say they’ve received a medical bill and didn’t have money set aside to pay it, according to a 2017 Ipsos/Amino poll.

Say “I do” to voluntary accident insurance

You can bring your clients and their employees an affordable solution by marrying up a voluntary accident plan with their major medical plan. Accident insurance helps cover unexpected costs from an accidental injury, from emergency room visits to ongoing care at the doctor’s office and even treatment-related transportation and lodging. The benefits are paid directly to the employee to use however they need — even for regular household expenses if their income is reduced while out of work following the accident.

And because the coverage is voluntary, it can help fill gaps in coverage with no direct cost to your clients. Employees who want the coverage select it and typically pay for it themselves through convenient payroll deduction.

What to love in an accident plan

No wonder accident insurance is an increasingly popular employee benefit. Eastbridge Consulting Group reports sales leapt nearly 40 percent from 2013 to 2017, now accounting for $1.1 billion in premium. But with many carriers and options to choose from, it can be overwhelming to find the best solution for your clients. Here are a few key attributes to look for when deciding between different accident plans and partners to work with:

• Strong benefits paid. Look for competitive benefit amounts for common procedures.
• Guaranteed issue. This means all employees qualify for coverage, with no health questions asked.
• Flexible plan designs. This allows your clients to choose the level of benefits they want to make available to their employees, and whether coverage is for accidents both on and off the job, or only away from work.
• Additional benefits. Some plans include a health screening benefit or hospital confinement benefit for a covered sickness for expanded options.
• Family coverage. Employees can choose to cover themselves as well as their spouse, children or whole family.
• Group and individual platforms. Each has advantages, so you can offer your clients the best fit with a single carrier.
• Compatibility with health savings accounts. Since accident insurance is a good fit for clients with high-deductible health plans, it’s important the voluntary coverage is HSA-compliant and not subject to Affordable Care Act market reforms.
• Excellent customer service. Be sure to choose a partner with a reputation for outstanding claims and customer support.

Offering your clients accident insurance helps them provide their employees the important financial protection they need. As part of an overall strong benefits program, it’s a proposal they’re almost certain to accept.

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David Polen is a director of product and market development at Colonial Life & Accident Insurance Company. He can be reached at 803-678-6158 or dpolen@coloniallife.com.