“Insurance on Insurance”

An important part of building a comprehensive benefits platform for employees today. Voluntary insurance has been common for many years, but with rising out of pocket costs this will be used as a bridge more and more. Be sure to evaluate ancillary products your PEO provides and take advantage of those compliance resources. These are valuable benefits that improve your corporate benefits program especially in light of Colorado’s tight labor market.

http://www.wsj.com/articles/for-cash-strapped-workers-insurance-on-insurance-1481025601
For Cash-Strapped Workers, ‘Insurance on Insurance’

Companies are helping to cover out-of-pocket costs, and the insurance industry is offering so-called gap policies

Wanda Palmer, director of human resources at the Clemson Area Retirement Center in South Carolina, says she buys gap insurance to ‘provide peace of mind for my family and protection against future issues.’ ENLARGE
Wanda Palmer, director of human resources at the Clemson Area Retirement Center in South Carolina, says she buys gap insurance to ‘provide peace of mind for my family and protection against future issues.’ Photo: Maura Friedman for The Wall Street Journal

As health insurance deductibles rise, employers are offering workers special policies to help cover out-of-pocket costs.

For many workers, paying for health care has become such a difficult budgeting exercise that the insurance industry is marketing additional products to help. So-called gap insurance, also known as supplemental or voluntary insurance, provides extra coverage for things like hospital stays, unexpected accidents or treatment for acute illnesses such as cancer or heart disease. The policies help cover the cost of high deductibles or copays for treatment—the gap that employees face before their health insurance kicks in.

“It is kind of like insurance on insurance,” says Brian Akian, a senior account executive with insurer Colonial Life, which provides gap insurance and is a unit of Unum Group.

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