Accuchex Blog

Q&A: Supplemental Maternity & Accident Insurances

Posted by Leslie Ruhland on Feb 27, 2019 8:00:00 AM
Accuchex Payroll Solutions
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Both routine and unexpected medical expenses are among the top concerns of today’s modern workforce. Employee financial stress costs employers: in productivity, in time off work, and in employee retention and satisfaction. Supplemental maternity insurance and supplemental accident insurance can help to paint a new picture for employees and employers and put everyone back on track. 

According to a 2018 Aflac survey of small-business employees, happiness is up, and stress is down for those employed by small businesses: 65% of those surveyed expressed that they felt working for a small business was “somewhat” to “very much” less stressful than working for a large business. And, approximately half of the respondents agreed that they were happiest working at a small company.

supplemental maternity insurances

Working for a small business is not without its challenges, however. The two most significant sources of concern for employees working in a small business environment are their ability to secure a salary and benefits equal to those that are offered by large employers and obtaining affordable health care coverage.

Employee satisfaction is closely linked to the benefits they receive from their employer. Small and medium businesses who offer their employees supplemental insurance policies as part of a robust benefits package are better able to attract and retain a more engaged, productive, and satisfied workforce.

With supplemental insurance policies to cover the gaps in their core health insurance plans, employees gain a financial safety net that can help pay for both expected and unexpected medical costs. Employees typically receive cash benefits when they experience a qualifying event and can use the funds to cover medical bills or even basic expenses such as paying the mortgage, buying groceries, or hiring a nanny to help out while they recover.

For employees just entering the workforce as well as industry veterans, two types of coverage seen as critical to help insulate them from the high costs of standard and emergency care are supplemental maternity insurance and supplemental accident insurance.

What is Maternity Insurance?

When the future King of England, Prince George of Cambridge, made his entry into the world in 2013, it was no surprise that his royal forebears opted for the security and comfort of a private hospital wing where mother, son, and the order of succession to the British throne would receive the best possible care. When the Duchess of Cambridge left the next day, future sovereign in hand, a bill estimated at USD $15,000 followed. By contrast, a non-royal US woman with commercial insurance giving birth in the United States could expect a bill more than double that, at nearly $33,000, for a standard delivery without complications or $51,000 for a cesarean birth, according to a study conducted the same year.

Before 2014, maternity care was not a guaranteed health insurance benefit and the out-of-pocket costs for pregnancy, delivery, and newborn care could vary widely from state to state and even employer to employer. Under the Affordable Care Act, maternity coverage is now among the ten essential benefits that group, individual, and family insurance plans must include. The out-of-pocket costs for parents-to-be under these plans can still include high copayments and deductibles, however, and financial concerns loom large in the minds of expectant parents who may not have the benefit of paid parental leave, either.

Supplemental maternity insurance plans, such as the coverage employers may provide through Aflac, can offer peace of mind to those who are concerned about how family planning will fit into their financial reality. Aflac’s supplemental maternity coverage is a combination of their Short Term Disability and Hospital Insurance plans and pays a portion of a new mother’s salary for five weeks after a natural delivery and seven weeks after a c-section.

Read more: Supplemental Disability and Hospital Insurance Policies 

What is Accident Insurance?

While some medical costs can be anticipated, others cannot. Supplemental insurance policies that cover critical illnesses and accidental injuries can help alleviate the stress of the unknown for your employees.  

Even with major health insurance coverage, the costs associated with treatment and recovery from an injury can be substantial. Expenses can stretch beyond medical bills, as well. If an employee’s child is injured playing sports, for example, they may need to reduce their hours at work or even take a leave of absence to take care of their child during their recovery. Supplemental Accident Insurance, such as the coverage provided by Aflac, pays a cash benefit (unless otherwise specified) when a covered individual experiences a qualifying injury. And, since many of Aflac’s options are stackable, they may receive additional payments through short-term disability or hospitalization coverage, giving them even more significant financial security.

The Aflac Accident Advantage policy also includes a wellness benefit that is payable for routine medical exams. Many uninsured or underinsured Americans report that they have put off necessary medical care due to their inability to cover the costs. This benefit encourages prevention and early detection, which can help cut down on future medical issues and expenses, and help to avoid lost wages and decreased productivity.

While coverage will vary from plan to plan, Aflac’s coverage provides a financial safety net for covered individuals with injuries such as burns, lacerations, concussions, broken bones, head injuries, and more. If an injury results in paralysis, benefits are paid to help with costs to remodel the person’s home, and the policy also includes an accidental death benefit.

Partner with Accuchex to offer maternity coverage and other supplemental insurance plans to your employees

Small businesses employ nearly 60% of American workers, and the overwhelming majority of surveyed small-business employees feel somewhat to very optimistic about the future of small business. Employees report that working for a small business feels like working for a family, where they have a greater ability to make an impact and receive more recognition and appreciation for their hard work.

Small business owners don’t always have the purse strings to match their Goliathan competition, but one thing they do have is access to the benefits that make them more attractive to the top talent in their field. If you’re ready to boost your benefits package with the no to low-cost supplemental insurance options your employees want and need, Accuchex is here to help.

Download the Accuchex Employer’s Guide to Supplemental Insurance to learn more, or call Accuchex Payroll Management Services at 877-422-2824 to talk to one of our specialists today.

Topics: supplemental insurance

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