MetLife, a leading provider of employee benefits, today announced the
release of new research exploring the growing need and popularity of
supplemental health solutions. Findings are highlighted in MetLife’s
white paper, Accident and Critical Illness Insurance Are Surprisingly
Good for Business!, which examines the financial risks associated
with accidents and critical illnesses and how employers can effectively
leverage voluntary insurance solutions to not only provide added
financial protection to employees, but to address their own business
challenges. The paper can be downloaded at metlife.com/cwb.
The Financial Impact of Accidents and Critical Illnesses
The white paper is based on two studies: the MetLife Accident and
Critical Illness Impact Study and the MetLife Accident and
Critical Illness IQ Study, both conducted in late 2013. The Impact
Study reveals the significant financial impacts accidents and
critical illnesses can have on families. The study finds that
out-of-pocket costs associated with an unexpected health issue can be as
high as $4,112 for an accident and $14,444 for a critical illness.
Moreover, lost income from accidents and critical illnesses can be as
much as $26,900 and $50,600 respectively, putting a significant burden
on a household. This is especially concerning since one in four surveyed
employees admit they do not know where the money would come from should
they face a health issue such as critical illness.
“According to the MetLife Accident and Critical Illness IQ Study
employees significantly underestimate the costs associated with an
accident or critical illness, especially lost income. This disconnect
may leave employees financially vulnerable should they face an
unexpected health issue,” says Meredith Ryan-Reid, vice
president, Accident & Health/Worksite Benefits for MetLife. “Further,
the shift toward increased employee responsibility for health care costs
through consumer-directed and high deductible heath care plans is
leaving employees more exposed than ever to these financial risks. Even
with medical and disability coverage, there are gaps in these coverages
that could leave employees unprepared.”
Supplemental Health Solutions
Supplemental health products, such as accident and critical illness
insurance, can help fill in the gaps, which may include lost income and
out-of-pocket medical and non-medical expenses such as co-pays,
transportation to treatment centers, and childcare. Accident and
critical illness benefits are paid regardless of what is covered by
medical insurance or other coverages and payments are made directly to
employees to spend as they choose.
A cost-effective way for employers to offer added protection employees
need and want, these products also have the potential to boost benefits
satisfaction, loyalty and retention. According to the IQ Study,
nearly six out of ten employees reported they would feel positive about
their employers if they offered accident and/or critical illness
insurance.
Yet, employees may be confused about supplemental health products and
may not understand how they work. The IQ Study reveals that
employees seriously underestimate the scope, flexibility and ease of use
of these products. For example, 85% and 83% of respondents do not know
everything covered by accident and critical illness coverage,
respectively.
“Employees are concerned about the potential for an accident or illness.
Our study found that 60% worried about the financial impact of a
critical illness on their families,” notes Ryan-Reid. “Despite this
concern, our study found that employees may not even be aware of
potential solutions—half of the worried respondents (51%) are unaware of
the potential solution provided by critical illness insurance.”
Employers Taking Action
To effectively implement a robust supplemental health benefits strategy,
employers must take actions beyond simply adding these products to the
enrollment ballot. Employers must be proactive in communicating to
employees about these benefits to develop awareness and value; workers
must recognize the advantages of these offerings before they open their
wallets. And, of course, the products offered must fit into a broader
healthcare strategy. The white paper provides important findings that
every employer should know to implement, communicate, and maximize
enrollment in voluntary accident and critical illness insurance benefits.
Research Methodology
In August and September of 2013, MetLife sponsored two online surveys,
conducted by GfK, to measure the awareness of accident and critical
illness insurance and the financial impact that an accident or a
critical illness can have on a typical U.S. household. The first survey,
the MetLife Accident and Critical Illness IQ Study, featured
interviews with 1,000 respondents, ages 25-55, including 441 people who
work full-time. The second survey, the MetLife Accident and Critical
Illness Impact Study, featured interviews with 2,017 respondents
(1,017 critical illness and 1,000 accident), ages 25 or older who were
affected by an accident or critical illness between six months and five
years prior to the survey. A key requirement to participate in the study
was that the individual for whom the survey questions were intended had
health insurance at the time of diagnosis.
About MetLife
MetLife, Inc. (NYSE:MET), through its subsidiaries and affiliates
(“MetLife”), is a leading global provider of insurance, annuities and
employee benefit programs, serving 90 million customers. MetLife holds
leading market positions in the United States, Japan, Latin America,
Asia, Europe and the Middle East. For more information, visit www.metlife.com.
Copyright Business Wire 2014