Achieve 3 Employee Retention Goals with 1 Solution: Supplemental Health Insurance
As post-summer routines settle into place, this time of year can often feel like a fresh start for more than just students and their parents – employers and brokers are also assessing employee benefit performance and needs. For many companies heading into open enrollment season, September is the ideal time to strategize on employee retention through benefit initiatives capable of achieving these three goals:
- Assess and address the year’s shortfalls
- Transform employee benefits that performed well into those that excel, and
- Harness the power of benefit packages in recruitment and retention efforts
With the right fully insured supplemental health insurance plans, brokers and their clients can effectively address all three goals with a single solution. Now that’s efficient!
Let’s look at exactly what supplemental health insurance brings to the table and how innovative benefit solutions can feed three birds with one seed.
What is Supplemental Health Insurance
Supplemental health insurance is an extra layer of employer-paid healthcare protection. It’s designed to cover out-of-pocket costs that primary health insurance might not, such as co-pays, deductibles, and other medical expenses that can add up quickly.
When strategizing about how to optimize budget, engagement, performance, recruitment and retention, supplemental health insurance can be an innovative alternative to off-loading costs to employees, experimenting with point solutions, or even cutting benefit offerings. Here’s how:
Goal 1: Fix the Shortfalls for the Long Haul
- Cost Inefficiency: According to a 2024 BLS news release, on average employers allocate more than 30 percent of their budget to compensation and benefits, investing about $21,500 per employee.[1]Yet surveys reveal that more than half of every dollar spent on healthcare goes to waste. Why? Underutilization due to employee confusion around accessing, using and engaging with their benefits. With supplemental health insurance plans – especially expense reimbursed health insurance such as solutions offered by ArmadaCare, the claims filing process is straightforward and streamlined, leveraging the convenience of online member portals and direct deposit for swift reimbursement.
- The Waiting Game: Unlike primary health insurance plans, employers can implement supplemental expense reimbursement plans on the first of any month throughout the year. That means if a company is looking to offer an enhanced benefits package to top talent in April, they can!
- One Size Doesn’t Fit All: Standard primary health plans designed for the general population often fall short when it comes to coverage and diversity. Supplemental health insurance plans can be finely tuned to match the unique requirements of various employee segments. This is especially poignant for companies that wish to provide enhanced coverage for their executives. As a result of their demanding schedules, executives often have unique healthcare needs and utilization. Offering their leaders precision-enhanced benefits can nurture long-term loyalty, optimizing employee retention.
Goal 2: Taking Benefits to the Next Level
- Enhanced Wellness: Employers who offer supplemental health insurance plans with coverage toward wellness, prevention, and specialist care for their top talent, will sharpen their competitive edge by cultivating a company culture that makes employees feel cared for and valued.
- Health on the Road: For those who travel frequently, supplemental expense reimbursed health insurance plans such as ArmadaCare’s Ultimate Health, offer peace of mind. This can speak volumes in employee retention efforts as work travel is often considered one of the most high-stress job requirements. Employers can mitigate that stress by providing their executives a benefit that offers fully paid air evacuation for medical, security, political or natural disaster emergencies to a member’s chosen hospital when 100+ miles from home, in addition to 24/7/365 emergency medical and dental referrals and more.
- Mental Health Support: With growing awareness of mental health, incorporating benefits packages enhanced with supplemental health insurance coverage for mental health services, underscores an employer’s dedication to employees’ complete well-being.
Goal 3: Nurture Employee Retention, Satisfaction and Recruitment
- All-Inclusive Protection: From co-pays and deductibles to alternative therapies, prevention, wellness and beyond, addressing out-of-pocket costs with supplemental health insurance can enhance the employee experience, nurture a culture of inclusivity and understanding, and help employees feel valued.
- Financial Security: Life is unpredictable, and medical emergencies can happen at any time. Supplemental health insurance plans take coverage a step beyond the expected, guarding against unanticipated healthcare expenses. Knowing they have this extra protection against various healthcare scenarios, employees experience peace of mind. When people feel secure, they’re more likely to stay put.
- Attract Top Talent: By offering superior health benefits, employers can create a more attractive, supportive, and diverse workplace, ultimately leading to higher employee retention. This can be the edge needed in today’s competitive job market, where having enhanced health insurance can set an employer apart from others who only offer the basics.
Finish the Year with A Fresh Start
Strategizing and refining the employee benefit approaches that will elevate company performance and well-being through 2025 is paramount. Ultimate Health by ArmadaCare is a supplemental health insurance solution capable of addressing utilization and primary plan shortfalls, elevating benefit excellence, and enhancing talent magnetism.
_____
ArmadaCare’s insurance policies are underwritten by SiriusPoint America Insurance Company and Transamerica Life Insurance Company. Insurance plans and coverages vary by state. Please contact us to confirm state availability.