3 unexpected benefits that can improve employees’ financial wellness

Medical costs have flattened American wallets. In 2022, Americans racked up $88 billion in debt due to medical bills.¹ 

How did this happen? Higher premiums lead to more exposure, meaning there are many common healthcare services that medical plans simply do not cover. If you’re an employer, not all is lost. A few less-talked-about benefit plans are available to help fill the gaps in medical coverage. 

Let's talk about a few of those plans.

Accident: For all random falls and breaks

Imagine you have an employee named Ed who loves to hike. 

Ed suffers an ankle injury while on a trail which requires a trip to the ER for X-rays. The total cost of the ER visit comes out to $1,200. His health insurance only covers $500, leaving him responsible for the remaining $700.

Since Ed has a standard accident plan through his employer, he was able to submit a claim and receive payment coverage for the billed charges. 

Injuries caused by situations like these are common. Beam Accident plans offer a direct, lump-sum payment to the member, regardless of their health coverage. Additionally, Beam provides options to add coverage for dependents, such as a spouse or child

Hospital: For life’s unexpected moments that result in a hospital stay

Here’s another story from a hypothetical employee named Dora. 

She has employer-paid hospital indemnity coverage for her family. Dora experiences complications of a high-risk pregnancy resulting in a 10-day hospital stay. A few weeks later, Dora and her newborn are hospitalized for three days following the delivery.

With a hospital indemnity plan, Dora receives $500 per day for 13 days, totaling $6,500, plus another $500/day for three days for her newborn’s hospitalization, totaling $8,000 in total benefits. She uses a majority of the payout on medical expenses and the remaining funds toward childcare services she incurred for her other children while in the hospital.

Critical illness: For the more serious and unexpected health concerns

We all know people who have suffered heart attacks, strokes, or cancer. 

They’re scary experiences for everyone involved and the financial burden doesn’t make it any easier. Critical illness coverage is an opportunity to provide a financial safety net for these types of scenarios.  

Let’s look at another hypothetical employee named Jim. 

Jim, a 47-year-old insured individual, suffers a stroke, leaving him and his family with medical bills not covered under health insurance, including his hospital stay, physician bills, and rehabilitation therapy. Critical illness provided a cash benefit paid directly to Jim with no limitations on how he and his family can use the funds. Jim’s family was able to manage the financial impact of a serious illness.

What’s the outcome? Jim received a payout of $10,000 – part of which he used to pay for medical bills not covered by his health insurance and the rest was used to help supplement his lost income while he was out of work.

We don't like to talk about it, but these experiences are common, and additional care is necessary to aid patient recovery. That’s why critical illness coverage is more important now than ever. 

Conclusion 

Experiences like the ones we highlighted do happen and have led to medical insurance policy changes, leaving many Americans financially at risk.

Products like accident, hospital indemnity, and critical illness are increasingly important in safeguarding employee financial security and well-being. By offering these products, you demonstrate to your employees a commitment to their health and help to fill the financial gaps beyond traditional benefits.