While numerous studies and surveys highlight how health insurance is one of the most popular benefits among employees, small business owners creating a benefits package for their workforce may be wondering what other worthwhile employee benefits they should consider.
Although they are typically not required to do so, many small businesses decide to separately offer supplemental health insurance plans to help their employees with paying for medical expenses not otherwise covered through their group health plan.
A supplemental health insurance plan provides separate coverage for medical services that a basic essential group medical plan does not cover.
Examples of common supplemental insurance plans for small businesses include:
Supplemental health insurance is optional, and a small business (with less than 50 full-time equivalent employees) is not required to offer this kind coverage to its workers. Still, depending on your company’s budget and coverage preferences, it may be worth exploring the possibility of providing supplemental insurance plans to better meet the medical needs of yourself and your employees.
According to a 2018 eHealth survey, the two types of supplemental insurance most often offered by small businesses to their employees are dental (52 percent) and vision (41 percent) insurance plans.
There are several compelling reasons why a small business may consider providing supplemental health insurance to its employees.
Overall, even though offering supplemental health insurance coverage means paying for a larger portion of employee premiums each month, the long-term benefits of offering additional plans may well outweigh the costs. Whether in the form of greater employee retention or coverage when you and your workforce need it most, supplemental plans may provide significant advantages for your small business.
This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.