As the U.S. continues to extricate itself from the global COVID-19 pandemic,^[1] there are still some very real concerns, challenges, and a lot of unknowns ahead relating to the economy and getting more Americans back to work.

Some of the concerns cited for not returning to the workforce right away include:

• Fear of contracting COVID-19 or spreading it to a child or immunocompromised loved one
• An ongoing need for in-home schooling and a lack of affordable childcare options
• The $300 weekly enhanced unemployment benefits – which may be allowing a portion of the unemployed to be more selective in their choice of future employer^[2]

Now more than ever small businesses need to explore ways to attract and retain workers. That’s where insurance options like fixed indemnity benefits, level-funded health plans paired with gap, and even dental insurance can play a role.

Do you have a group client that’s in a bind? We can help create a benefits package so they stand out from the competition.

What Are Fixed Indemnity Plans?

Fixed indemnity benefits is a guaranteed issue group critical illness and accident plan that can be used as stand-alone coverage in most states or to supplement a major medical plan.

It’s important to note that this is not an ACA-qualifying health plan. For groups that are interested in providing qualifying coverage and possibly saving on premium and receiving a percentage of their claims fund dollars back, a level-funded plan may be a good alternative.

How fixed indemnity plans work:

Lump sum benefits are paid for qualifying accidents and critical illnesses. Depending on the product, benefits may be available for:

• Preventive healthcare services and routine office visits
• Hospitalization
• Telemedicine
• Dental and vision care
• Lump sum accidental death and dismemberment
• Short term disability

Some of the advantages of fixed indemnity benefits include:

• Guaranteed issue
• No network restrictions
• No deductible, coinsurance or required pre-authorization
• Plans can cover the employee, employee and spouse, and dependents
• Full-time, part-time, seasonal and gig workers are all eligible

Who Needs Fixed Indemnity Benefits?

Fixed indemnity benefits can help anyone who is already enrolled in an ACA-qualifying health plan.

That includes individuals who get coverage through:

• A spouse’s employer group plan
• A subsidized ACA plan through HealthCare.gov or a state Exchange
• Medicaid
• An Individual Coverage Health Reimbursement Arrangement (ICHRA)

The fixed indemnity benefits pair with either group or individual coverage, making these plans a flexible option for an employer that wants to add a relatively straightforward benefit incentive to attract and retain hourly workers.

Remember, it’s critical that group owners understand that fixed indemnity plans are “excepted benefit” plans. They are not subject to most federal health insurance regulations and do not count as ACA-qualifying coverage. They are not a replacement for comprehensive, qualifying health coverage.^[3]

For the hourly employee, the main advantage of these plans is in the form of wage replacement. While their qualifying health plan will cover the costs of an injury or illness, they don’t provide funds to help with missed workdays. Fixed indemnity plans can help with that, providing reimbursement that can help with everything from groceries to the deductible associated with their major medical policy.^[4]

Some plans also reimburse some preventive care, which is typically covered by qualifying plans at $0 out-of-pocket. Again, this can help reimburse hourly workers who generally aren’t earning their wage if they’re not clocked in, such as when they have to visit the doctor for a routine checkup.

Have a group you’re interested in quoting Accident + Critical Illness benefits for? We can help (there’s no pressure or obligation).

Group Specialists – Helping Every Step of the Way

IBG Group Specialists support all of your group business needs – from simple to complex – they have dealt with it all and are committed to providing the assistance you need.

IBG Group Specialists are:

• Responsive – Same-day or next business day call-back or email
• Experienced – Our team can arm you with the knowledge you need, when you need it
• Comprehensive – Quickly shop and deliver options for annual renewals
• Creative – Find savings in the level-funded market

Sell with confidence by partnering with an IBG Group Specialist.

Next Steps for Agents

With the challenges small businesses are facing in the current economy, they need every possible advantage to attract and retain a reliable, qualified workforce.

There is no better time to make that phone call to your group clients to offer them a leg up on their competition in order to get prospective employees through the door in a highly competitive labor market.

Now that you know about fixed indemnity plans, why not let us run a few group quotes for you and see if you can find some value for your clients?