Employees see value of supplemental health insurance, but need education

Seven in 10 employees with supplemental health insurance are confident that they will be able to meet their financial goals, compared with 60% of those without this coverage, a new survey found.

“Our survey has identified a strong link between supplemental health benefits and employees’ sense of financial wellbeing,” said Kristina Welke, head of strategy, solutions and marketing at New York Life Group Benefit Solutions. “As health care costs rise and employees are shouldering more out-of-pocket costs, supplemental health benefits can be an additional safety net, which many are starting to understand and appreciate, though more education is needed.”

The rising cost of health care is a concern for the majority of employees, the survey found:

• Fifty-seven percent of employees had out-of-pocket health care expenses this year that were not covered by their health insurance plan;
• Sixty-four percent say they worry about their health care costs; and
• Three-fourths of employees agree that they wish their out-of-pocket health care expenses were lower.

For those who are currently employed, the top five benefits employees are most interested in receiving are employer match on a 401(k) or other retirement savings plan (74%); supplemental health insurance (50%); flexible work arrangements (48%); mental health support and access to resources (38%); and long-term care insurance (37%). Among employees actively searching for a new job, supplemental health insurance is the No. 3 benefit they are most interested in receiving from an employer (42%).

Related: Voluntary benefits: A snapshot of employees’ current views

However, despite their interest in supplemental benefits, less than half of employees feel extremely knowledgeable about the various aspects of their employer benefit plan, such as costs and benefit offers, suggesting greater education and outreach is needed across the board. Most commonly, employees have only a general idea of the various aspects of their benefit plan. Only one-third of employees feel extremely knowledgeable about which benefits they need to enroll in to cover their needs, meaning two-thirds could use additional help in this area.

“The knowledge gap revealed in our findings is a clear call to action for employers,” Welke said. “Open enrollment isn’t just about selecting benefits; it’s about empowering employees to make informed decisions about their health care and financial security. By providing clear communication and educational resources, employers can ensure their workforce truly understands and maximizes the value of their benefits.”