Beyond Medical Coverage: Components of a Comprehensive Benefits Package

The information contained in this article is not intended as legal advice and may no longer be accurate due to changes in the law. Consult NHMA's legal services or your municipal attorney.

A robust benefits package is essential not only for attracting and retaining employees but also for ensuring the overall well-being and security of your employees and their families. Among the most critical components
of a comprehensive package are life, long-term disability, and short-term disability coverages. These coverage lines play a pivotal role in safeguarding employees and their families against financial hardships that can arise from unexpected life events. Let’s look at the importance of providing these types of coverage, the benefits for both employees and employers, and why there has never been a more important time for municipal employers to provide these coverages.

Life Coverage

Life coverage is a cornerstone of financial security for employees' families. In the event of an untimely death, it provides a monetary payout to designated beneficiaries, helping them manage ongoing expenses such as mortgage payments, educational costs, and daily living expenses. This support can prevent families from experiencing significant financial distress during an already challenging emotional period. For employees, knowing that their loved ones are protected can bring immense peace of mind, allowing them to focus more effectively on their work and personal lives. For employers, offering life insurance is a powerful way to demonstrate a commitment to the long-term well-being of your workforce, fostering a sense of loyalty and trust. It could help you stay competitive when hiring new employees, too; the U.S. Bureau of Labor Statistics (BLS) reports
that 83 percent of state and local government employees have access to life insurance.

Disability Coverage

Even municipal workers who have life coverage likely do not have disability insurance. Only 27 percent have access to short-term disability coverage and 39 percent have access to long-term disability coverage, according to the BLS. These low numbers are concerning given that other research has revealed about two-thirds (66%) of Americans say they are living paycheck to paycheck, meaning they could not pay their bills or adequately manage their finances if they were to become unemployed. Disability coverage – which provides a safety net in the event of job loss due to illness or injury – can truly be a lifeline for your employees and their families.

• Long-Term Disability Insurance. Long-term disability (LTD) insurance provides financial support to employees who are unable to work for an extended period due to serious illness or injury. Long-term disability
  coverage typically replaces a portion of the employee's salary, ensuring that they can continue to meet their financial obligations despite being out of work. It’s hard to overstate the importance of LTD insurance;
  according to the Council for Disability Awareness, one in four workers entering the workforce today will experience a disability before they retire. Without LTD coverage, employees may face significant financial
  hardship, potentially exhausting savings or accruing debt.
• Short-Term Disability Insurance. Short-term disability (STD) insurance covers a portion of an employee's income for a shorter duration, typically from a few weeks up to six months, depending on the policy. This
  type of insurance is crucial for covering income during temporary but disabling conditions, such as recovery from surgery, a severe illness, or childbirth.

STD insurance ensures that employees have the financial support they need to recover without the added stress of income loss. This support encourages employees to take the necessary time to heal fully before returning to work, promoting a healthier and more productive workforce in the long run.

Providing life, long-term, and short-term disability coverage is a strategic and compassionate choice for employers. These benefits offer crucial financial protection and peace of mind for employees and their families,
enhance employee loyalty and satisfaction, provide a competitive edge in recruitment, and contribute to a positive, supportive organizational culture. Employers who invest in comprehensive insurance coverage
are likely to see substantial returns through a dedicated, healthy, and high-performing workforce.

Go The Extra Step: Peace of Mind Coverages

The death of any family member can be heartbreaking, but when the deceased person is also the individual who had provided the family with health coverage through their job, their death can be catastrophic for the family. As a public employer, you may be able to help.

The following coverages are included with all HealthTrust medical plans:

• Transition Care protects family members of covered active employees, providing medical and/or dental coverage for up to one year after the Enrollee’s death.
• Survivor Care protects family members of covered active employees who die while performing their jobs, providing medical and/or dental coverage to family members as long as they are eligible.

Learn More!

Adding coverages to your benefits package may be easier and more cost-effective than you anticipate. For more information, a proposal, or to review your current benefit strategy and costs to see if you could offer more comprehensive coverage to your employees, contact your HealthTrust Benefits Advisor (if you are currently a HealthTrust Member) or Janet Foley, HealthTrust Member Relations Representative at jfoley@healthtrustnh.org, 603.230.3347.

Janet Foley is the Member Relations Representative at HealthTrust.
David Salois is the Benefit Services Manager at HealthTrust.

Sources:
Almost 50% of Americans Consider Themselves “Broke” (MarketWatch)
Employee Benefits in the United States (Bureau of Labor Statistics)
Chances of Disability (Council for Disability Income Awareness)