The Harsh Reality Of Rising Medical Expenses During The Holidays

Here’s how to re-lift the holiday spirit

After a trying 2020, American workers and their families are surely looking forward to some much-needed respite during the holiday season. However, many workers may be feeling anxiety or stress during the holidays due to the effects of the pandemic on the nation. As a result, HR departments continue seeking ways to help ease workers’ emotional and financial burdens. 

According to the American Psychological Association, 64% of American adults consider money to be a significant source of stress,¹ and Covid-19’s unknowns have compounded the difficulties of normal, everyday life, especially as the holiday season approaches. Therefore, many families may have a harder time than usual celebrating this year.
 

Beating Stress With Benefits 

In fact, financial concerns have led 71% of families with children under 18 in the household to make a sacrifice or hard decision during the holidays because of medical cost concerns, according to the 2020 Aflac Health Care Issues Survey. These include spending less on holiday gifts or not giving them at all, relying on a credit card to cover holiday expenses or canceling holiday plans.²

HR managers may not be able to help put more gifts under the tree, but they can possibly help employees recover some unclaimed funds from the health benefits they’ve selected. For those workers who have supplemental policies in place, HR managers can remind employees to submit claims and walk them through the process. Encouraging employees to schedule their annual doctor visits can also help as some supplemental policies pay benefits for wellness visits.

In addition to money, nearly seven in 10 adults say that health care is also a significant source of stress, and among those, 64% say the cost of health care is a cause of stress.³ Fortunately, there are many other opportunities under supplemental insurance to help workers avoid the stress of finances in the form of value-added services. 

More companies are bulking their benefit offerings to go beyond the basics and include services that focus on addressing employees’ physical, mental, and financial health. Companies like Aflac are expanding services to include everything from personal wellness programs to legal assistance to health advocacy services.
 
More specifically, telehealth has been gaining popularity this year, helping to cut down on the amount of time workers are out of the office and offering convenience to families who are both working and overseeing e-learning from home. Additionally, health advocacy services can answer employees’ questions about health care coverage and medical bills and can even help negotiate costs. 

Another benefit can include employee assistance programs that provide mental and emotional support from specialists who can assist with a range of personal issues, including work/life balance and childcare. Meanwhile, financial advisory services can help employees ensure they’re making wise financial decisions, learn how to tackle student loans, build a rainy-day fund, and plan for retirement. 

Preventing Future Holiday Blues

Unfortunately, more than one-third of families said they made health care coverage decisions they regret within the past two years. Some of the top reasons for this benefits remorse include choosing a plan with limited benefits (41%), choosing too high of a deductible (40%), going to an out-of-network doctor (39%), and not sufficiently researching benefits (31%).² 

Heading into 2021, HR managers can start benefits campaigning early. Providing benefits education throughout the year can help employees prepare accordingly and to steer clear of future holiday blues. Since popular health care plans often fall short of covering the full cost of an illness or injury, HR decision-makers can help highlight the importance of supplemental insurance leading up to the next open enrollment period. 

Supplemental coverage such as accident, cancer, hospital indemnity and critical illness insurance can help serve as a financial safety net for employees. These policies pay cash benefits which can be used for costs health insurance doesn’t cover like out-of-pocket medical costs and living expenses, making it a compelling option for keeping future holiday humbugs at bay. To help market these benefits to employees, many insurers offer educational resources, personalized communications strategies and employee benefit consultations. 

Re-Lifting the Holiday Spirit

2020 has been a challenging year for all. However, by communicating with employees on how to best leverage their current benefits and sharing ways they can prepare for future out-of-pocket expenses, HR managers can help ensure every employee’s family has the best holiday possible. 

Coverage is underwritten by Aflac New York.

Aflac’s affiliation with the Value-Added Service providers is limited only to a marketing alliance, and Aflac and the Value-Added Service providers are not under any sort of mutual ownership, joint venture, or are otherwise related.  Aflac makes no representations or warranties regarding the Value-Added Service providers, and does not own or administer any of the products or services provided by the Value-Added Service providers. Each Value-Added Service provider offers its products and services subject to its own terms, limitations and exclusions. Services, Terms and conditions are subject to change and may be withdrawn at any time. The value-added services may not be available in all states, and benefits/services may vary by state.

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Notes

Wendy Herndon is Second Vice President of Product Launch and Adoption at Aflac. With more than 20 years of experience in this field, she is responsible for providing the overall strategy for all product-related launch, promotional and educational activities.    Visit www.aflac.com Connect Wendy Herndon Follow @aflac