Interest in voluntary benefits has surged, with expectations for continued growth over the next five years. A McKinsey study indicates that the compound annual growth rate (CAGR) for Supplemental Health premiums is projected to exceed 10% through 2030. This would make Supplemental Accident and Health products the fastest-growing non-medical premium volume in the Health and Welfare sector.
During the COVID-19 pandemic, supply chain issues and inflation increased costs, prompting employees to expand their buying power by choosing health plans with lower premiums but higher deductibles. To mitigate potential expenses from these plans, many opted for Accident, Critical Illness, and Hospital Indemnity policies. These policies provide financial security against large hospital bills or income loss due to illness or injury.
Employers have focused on offering diverse benefit choices to meet the needs of a multi-generational workforce. According to Voya, "56% of employed Americans are more likely to stay with their current employer if offered access to voluntary benefit offerings." McKinsey's report "The State of Organizations 2023" identifies employee benefits as a major factor in employee turnover, second only to higher compensation.
The International Foundation of Employee Benefit Plans’ 2022 Employee Benefits Survey Report reveals that nine out of ten employers offer at least one voluntary benefit. Larger organizations are more likely than smaller ones to provide these benefits.
Off-cycle enrollments for new benefits additions help ensure proper engagement and communication about Supplemental Health Plans. This approach often results in better enrollment outcomes. Employers can seek guidance from AssuredPartners teams for support.