Voluntary benefits like hospital indemnity can cost-effectively help recruit and retain talent

Amid a competitive job market, companies continue to bolster benefits as an effective strategy to recruit and retain employees. But pursuing this strategy comes with a caveat: it’s expensive.

That’s why more employers are turning to voluntary benefits to mitigate rising benefits costs. Eighty-three percent of HR professionals believe offering more voluntary benefits will help retain employees, and 72 percent think they will attract new talent.¹

Hospital indemnity insurance, for example, is one voluntary benefit that can minimize the impact of an employee’s out-of-pocket costs related to an unexpected hospital stay – and help reduce the financial burden of a high deductible health plan (HDHP). Plus, it can be a more affordable benefit for employers to offer because they’re paid for by the employees themselves.

Hospital indemnity insurance is one of the five fastest-growing voluntary benefits, with 42 percent of employers currently offering it. By 2022, experts predict this number to increase to 65 percent.²

What is hospital indemnity insurance?

As popular as hospital indemnity insurance has become, many HR teams are finding they must educate employees on its value. In a survey, one company asked its employees, “Do you own and understand hospital indemnity insurance?” Only 2 percent said “yes.”³

To educate employees on how hospital indemnity insurance can help them, focus on these three areas:³

1. Appeal to emotions; don’t just give them facts
2. Talk about how hospital indemnity can fill gaps left in medical insurance
3. Focus on the long-term financial risk

Securian Financial’s hospital indemnity insurance provides a predetermined benefit amount while the insured is in the hospital. The cash benefit is paid directly to employees – to use any way they wish, including out-of-pocket, non-medical insurance covered and cost-of-living expenses. What’s more, the payout doesn’t depend on income or participation in other employer insurance offerings.

Recently, Securian Financial enhanced its hospital indemnity benefit – here are some coverage highlights:

• Family care: Provides a benefit when a child requires professional care while the insured is hospitalized
• Pet boarding: Provides a benefit when a pet needs professional boarding or sitting while hospitalized
• Medical equipment: Provides a benefit when medical equipment (crutches, wheelchairs, etc.) must be rented or purchased
• Newborn routine stay: Provides a benefit for each day an infant is confined following delivery
• Outpatient mental health screening: Provides a benefit when an insured receives specific outpatient mental health diagnostic screenings

Moving into 2022, benefits managers should look at shoring up their benefits plans with robust voluntary offerings. It’s one more way companies can attract and retain top employees in today’s unpredictable economy.