By Audrey Tillman, Aflac Executive Vice President, Corporate Services
Our feelings aren’t hurt. We know most employees don’t understand voluntary insurance, and there are even a healthy number of HR decision-makers who struggle with the ins and outs of supplemental policies. In fact, we recently asked more than 2,000 HR decision-makers how knowledgeable they feel their employees are about voluntary insurance benefits and well, it wasn’t encouraging. More than a quarter of companies (27 percent) said employees are not very/not at all knowledgeable, and another 57 percent said they are “somewhat” knowledgeable.1
Now, we would argue that improving employee wisdom about voluntary options has always been important. However, there is sound evidence that it is perhaps more important than ever. Health reform is driving significant growth of voluntary options because they help solve a number of challenges now faced by HR executives. This alongside increasing health care consumerism means workers and HR representatives need to know the facts about voluntary insurance options.
Myth #1 – Payouts from voluntary insurance policies can only be used for specified medical expenses.
According to the 2011 Aflac WorkForces Report, two-thirds of employees (66 percent) and nearly as many HR decision-makers (62 percent) mistakenly believe that payouts from voluntary insurance policies can only be used for specified medical expenses.2 The truth, however, is that voluntary insurance pays cash benefits directly to the policyholder, unless otherwise assigned, to be used in any way he or she chooses—from helping pay daily expenses like mortgage payments or rent to helping pay for gas to and from the doctor.
Myth #2 – Voluntary insurance always pays doctors directly for medical bills.
According to the Aflac study, more than half of employees and HR decision-makers believe voluntary insurance plans always pay doctors directly for medical bills. But they are incorrect, and this perception feeds into another distinction between voluntary and major medical insurance that is misunderstood. The reality is that voluntary insurance plans are designed to help policyholders pay for the many out-of-pocket expenses that major medical insurance doesn’t cover, including cash benefits to help with copayments, deductibles and general living expenses.
Myth #3 – Voluntary insurance costs way too much.
Half of employees falsely believe supplemental insurance plans cost too much and more than one-third of HR decision-makers agree. The truth is that several voluntary insurance providers offer a range of products that fit many budgets, and they seek to offer families broader insurance coverage that helps protect against the financial burden of an unexpected accident.
Myth #4 – It costs employers to offer voluntary insurance options.
Fifty-six percent of employers surveyed believe it isn’t true that voluntary insurance benefits have no direct cost to employers. This misperception is unfortunate and it can be costly for companies that are looking for ways to keep health care costs down while providing employees with access to coverage they need and demand. There is no direct cost to employers for making voluntary insurance policies available to workers, and adding such plans to their options can help companies build robust benefits packages while staying within proper cost constraints.
Myth #5 – Employers pay all or most of the voluntary insurance premium.
One in four HR benefits decision-makers believes that employers pay all or most of the premiums for voluntary insurance plans. However, voluntary insurance plans are typically paid for entirely by employees. Consequently, many voluntary plans are portable and belong to the employee—an aspect that is highly beneficial and important to many workers. In other words, policyholders can keep their voluntary plans at the same premium if they change jobs or retire.
As more companies turn to voluntary plans as an attractive addition for their workers’ health care insurance needs, clearing up misconceptions and aggressive education with workers about these options will be crucial. Find out more about what employees are saying and how you can use your benefits package to attract and retain talent — visit AflacWorkForcesReport.com.
Audrey Tillman, a 15-year insurance industry veteran, is Aflac’s Executive Vice President of Corporate Services. She is responsible for all aspects of human resource management for Aflac’s more than 4,400 employees. She also oversees operations in the Facilities and Health Services divisions, as well as in Corporate Services, Corporate Learning division and Environmental Coordination area. During her tenure, Aflac has received multiple honors from FORTUNE magazine’s 100 Best Companies to Work for, Working Mother magazine’s 100 Best Places for Working Mothers, BusinessWeek’s Best Places to Launch a Career, Training magazine’s Training Top 125, among many others.
For more information on Aflac, call 1-800-99-AFLAC or visit
