Small businesses or large corporations have a common struggle to survive in an economy plagued by inflation, downsizing, low consumer confidence, and high unemployment. Health care service costs are skyrocketing, while government mandates increase the care requirements of health insurers. Economics tells us that There is no free lunch!

As healthcare services continue to experience rising costs, so do the insurance plans that pay for them.

Employers seeking to maintain the traditional benefits they have used to help attract and keep employees are facing the laws of diminishing returns with these rising premiums. Raising deductibles and increasing copays, fixed employer contributions, dual option plans, HSAs, and HRAs are some of the options now being used to help control spending costs.

With most of these planning strategies, the final result is an increase in expenses, both in the insurance payment and in the provider’s services (hospital, surgeries, doctor visits, medicines, etc.) that fall on the employee .

Enter the world of Supplemental Benefits. The first company to offer these plans was Colonial Life and Accident Insurance, founded in 1939 and headquartered in Charleston, South Carolina, Colonial became the first company to provide benefits through workplace marketing.

Supplemental plans like those offered by Colonial Life have brought new life to the healthcare market. These plans were not affected by the Health Reform Legislation. They offer a first-dollar benefit payable to the insured and, due to increased out-of-pocket costs, become insurance for which health insurance does not pay. Safe for sure?

An employee can choose from a menu of options in plan selection. Among them are the Accident, Disability and Cancer plans. These three options tend to be the most popular, but others exist, such as Level Term Life, Long Term Care, and Critical Illness, to name just a few.

The plans are generally offered to the employee on a voluntary basis. They are typically listed at Group rates but are issued individually, allowing the employee to maintain coverage if they terminate or retire. Plan costs are fixed, inexpensive, and generally qualify for inclusion in Section 125 plans, allowing for additional savings.

Disability should be the plan most people should consider first. Since people find it difficult to make ends meet while working full time, the inability to work due to injury or illness can be financially devastating. Disability payments can be “tax-free” to the beneficiary, as long as the premiums are not included in a tax-leveraged 125 plan or are paid by the employer. Look for waiver of premium, partial disability, disability payments even if you don’t have active employment, and on-the-job coverage in addition to workers’ compensation as essential components of the plan.

Accident plans are arguably the best value of coverages due to their low cost and potential benefit ratios. On or off the job and 24/7 coverage is essential. Spouse and family coverage is generally offered for a small additional cost.

Cancer plans work because one in two men and one in three women in the US will have a type of cancer at some point in their lives. 70% of cancer-related costs are incidental and not covered by health insurance. Costs such as job loss, travel for treatment and lodging for family members, child care for a recovering parent, or home health care. Of course, medical plan deductibles and copays may also be covered.

While any of these plans are selected on a pick and choose, all or some or nothing basis, they are all capable of paying several thousand dollars to help offset medical bills and living costs. These low-cost options should not be overlooked in a strategy to maintain a high-quality health care benefits program.

http://www.forbes.com/sites/aroy/2011/12/13/unreasonable-rate-review-for-health-insurance/