Despite the projected increase, “friction” gets in the way of wider-spread adoption.
By Gillian Manning
Voluntary benefits can be fantastic perk, and one that’s on the rise. However, implementation can be easier said than done, according to a new report.
The Employee Benefit Research Institute (EBRI), in partnership with Lincoln Financial, examined awareness and utilization of voluntary benefits across employer, broker, and employee audiences based on a survey of 170 brokers who support employer decision-making for voluntary benefits offerings, including supplemental health, dental and vision benefits. The report–Expanding the Benefits Horizon: How Brokers View Voluntary Offerings–found that 77% of brokers expect health insurance sales to increase in the next year. They also anticipate a rise in group life insurance (64%) and supplemental health products (62%).
Employers, however, may not be fully prepared to meet the growing demand. Brokers polled by the EBRI claim that the adoption of supplemental benefits is hampered by administrative burdens, a lack of uniform knowledge of supplemental offerings, and the need for more robust employee education.
“The research report findings point to clear opportunities to reduce friction in enrollment and administration and to strengthen education so employers and employees can make more confident decisions about voluntary benefits,” said Bridget Bearden, director of membership growth and partnerships, EBRI.
Other key findings from the report also include the following.
- Nearly half of brokers indicate administrative complexity as the core obstacle to including additional health benefits.
- Most brokers (63%) said better educational tools for employees would improve the effectiveness and appeal of supplemental health benefits.
- Brokers were less likely than employers to point to employee morale as a key reason for offering supplemental benefits (48% versus 85%).
- While employers are perceived to have a better understanding of core benefits, only 33% of brokers said employers understand supplemental offerings “very well”.
- Just 47% of brokers stated that the industry is completely satisfying employers’ demands for supplemental health benefits (45% for dental and vision).
