A recent survey by insurance provider Aflac revealed that 86 percent of registered nurses said a hospital's benefit package is one of the top criteria for accepting employment, with 75 percent preferring an employer that provides voluntary insurance policies such as short-term disability and accident policy.
"Our research indicated that voluntary insurance is moving into the must-have category for employers looking to attract and retain this key group of professionals," said Samantha Franck, market development manager in Aflac's Channel Marketing Department.
With 100 percent of premiums typically being paid by employees, hospitals can add voluntary insurance without bearing direct cost, Franck said. When used with a Section 125 Cafeteria Plan, "voluntary insurance can reduce payroll taxes for the hospital," she said.
With the economic crisis exacerbating the financial picture for hospitals already squeezed by associated recruiting, wage and benefit expenses, shrinking reimbursements and the rising number of uninsured patients, this is a win-win situation for hospitals and nurses, Franck said.
A study by LIMRA, a global association of insurance and financial services companies, revealed that four out of five healthcare benefits decision makers believe that voluntary insurance plans are a cost-effective way to provider more benefits to employees.
"More than 70 percent of healthcare benefits decision makers agree that voluntary insurance will help contain costs," she Franck, referring to the LIMRA study.
She noted that, for employees, voluntary insurance helps lessen the financial impact of a major health event.
"The survey also suggests that voluntary insurance can improve the perception of the overall benefit package," Franck said. "Twice as many nurses surveyed with voluntary insurance rated their health insurance as excellent compared to nurses surveyed without voluntary insurance."
With only approximately 50 percent of hospitals currently offering voluntary insurance, Franck said the market opportunity is "wide open."