Popularity of voluntary benefits rising as a result of high healthcare costs

Wednesday, 03 August 2011 16:00

News - Health Care Costs

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As healthcare costs rise, so does the prevalence of organizations offering voluntary employee health benefits, according to a new survey by Colonial Life & Accident Insurance Company.

With voluntary benefits, employees can pick and choose whether they want to sign up for life insurance or coverage for dental, vision or disability, as opposed to such fringe benefits being included in a core package.

The survey revealed that, over the next year, nearly half of companies expect to offer the voluntary, employee-paid benefits as part of their insurance plans.

"Offering voluntary products that complement core benefits can help companies better manage their costs. Voluntary plans can also give employees a convenient and affordable way to protect their families and lifestyles," said Randy Horn, CEO of Colonial Life.

Additionally, more than half of administrators said they plan to raise insurance premiums, and 49 percent said their workers can expect deductibles and co-payments to rise.

The rising costs of healthcare underscore the need for preventative measures, such as health education and stress reduction methods, considering that stress has been linked to a host of illnesses.

Employee wellness programs that offer tools and resources for stress management and healthy living may have a significant impact on a company's bottom line.