Voya Financial Expands Hospital Indemnity and Disability Insurance Offerings as More Americans Turn to Their Employers for Help With Financial Wellness Needs
MINNEAPOLIS--(BUSINESS WIRE)--Feb 12, 2020--
Voya Financial, Inc. (NYSE: VOYA), announced today that its Employee Benefits business has expanded its suite of supplemental insurance products to help employers and their employees as both groups increasingly seek financial wellness solutions through workplace-based offerings.
Specifically, Voya’s newly enhanced supplemental hospital indemnity and short-term disability income insurance products will help Americans address financial protection needs. Voya’s own customer data shows that more than four out of 10 retirement plan participants (44%) have protection or insurance gaps in their coverage, 1 and nearly one-third (32%) of retirement plan hardship withdrawals are due to unreimbursed medical expenses. 2
“Our primary goal with these enhancements is to provide affordable solutions that can help Americans cover the out-of-pocket costs of some of the biggest financial challenges they face today,” said Rob Grubka, president, Voya Employee Benefits. “As consumer-driven health-care plans continue to grow in popularity and usage, supplemental insurance products — like Voya’s new hospital indemnity and short-term disability income insurance — can help mitigate the need for employees to dip into their retirement accounts and other savings to cover unexpected out-of-pocket costs, so they can focus on getting back on their feet and back to work.”
“Employers will be able to easily select the options that best meet the needs of their workforce. For example, to help employees who are planning to start or grow their family, employers might consider including some of the additional newborn child coverages available in Voya’s hospital indemnity insurance so that expecting parents can focus on their baby rather than worrying about hospital bills. For people with mental health disorders or addiction challenges, this insurance can help break down some of the cost barriers that prohibit them from getting the treatment they need due to confinement costs, while at the same time having much-needed access to salary protection from short-term disability,” said David Fry, senior vice president, Employee Benefits Product and Pricing, Voya Financial.
“The convergence of health and wealth has shifted the workplace benefits landscape. Employers are increasingly looking for supplemental offerings that they can easily integrate into their workplace benefits and the financial wellness programs that their employees’ value. According to industry research, 4 two-thirds of employers (69%) believe supplemental benefits will be a very or more important component of their employee value proposition in three to five years — nearly double the percentage (36%) who currently feel this way,” explained Fry.
According to industry research, 5 U.S. health-care spending is forecasted to grow by 5.8% on an average annual rate basis from 2012 to 2022. And with 78% of U.S. workers living paycheck to paycheck, 6 it would be difficult for many Americans to pay for an unexpected cost not covered under their health insurance plan. For example, the average cost of one day in the hospital in the U.S. is more than $2,400, with the average patient staying more than four days. 7 Additionally, when you consider an estimated 26% of Americans ages 18 and older — about one in four adults — suffer from a diagnosed mental disorder each year, 8 the demand for additional protection products to serve the growing wellness needs of Americans is clear.
“I would encourage employees to take some time to look at all of their workplace benefits to help with their physical and financial needs,” said Grubka. “Their employer has done the homework to find the products they believe their employees will value and, often, at a group rate that is less expensive than if the employee buys it on their own.”
Voya Employee Benefits’ supplemental insurance products — including its new hospital indemnity and short-term disability income insurance — are offered through the workplace as “voluntary” or employee-selected coverage that is processed and administered similarly to traditional group insurance. Employers may choose to: fund the plan for their employees; offer it as an option employees can purchase through their workplace benefits; or create a combined option in which the employer pays a portion of the benefit and the employee can purchase additional coverage.
Voya Employee Benefits offers stop loss, group life, disability and supplemental health insurance products through the workplace, as well as health savings and spending accounts, to employers and their employees. The business has extensive experience in the design, implementation and administration of employee benefits plans, and offers a full range of supplemental insurance products that include critical illness/specified disease, accident, hospital indemnity and disability income insurance.
As an industry leader and advocate for helping Americans retire better, Voya Financial is committed to delivering on its vision to be America’s Retirement Company ®, and its mission to make a secure financial future possible — one person, one family, one institution at a time.
About Voya Financial ®
Voya Financial, Inc. (NYSE: VOYA), helps Americans plan, invest and protect their savings — to get ready to retire better. Serving the financial needs of approximately 13.8 million individual and institutional customers in the United States, Voya is a Fortune 500 company that had $7.5 billion in revenue in 2019. The company had $603 billion in total assets under management and administration as of Dec. 31, 2019. With a clear mission to make a secure financial future possible — one person, one family, one institution at a time — Voya’s vision is to be America’s Retirement Company®. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has been recognized as a 2020 World’s Most Admired Company by Fortune magazine; one of the 2019 World’s Most Ethical Companies ® by the Ethisphere Institute; as a member of the Bloomberg Gender Equality Index; and as a “Best Place to Work for Disability Inclusion” on the Disability Equality Index by Disability:IN. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.
Accident, Critical Illness and Hospital Indemnity Insurance are limited-benefit policies. It is not health insurance and does not satisfy the requirement of minimum essential coverage under the Affordable Care Act.
Health Savings and Spending Accounts are accounts offered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC) and administered by WEX Health, Inc.
Insurance is underwritten by ReliaStar Life Insurance Company (Minneapolis, MN) and ReliaStar Life Insurance Company of New York (Woodbury, NY). Both are members of the Voya ® family of companies. Within the State of New York, only ReliaStar Life Insurance Company of New York is admitted, and its products issued. Voya Employee Benefits is a division of both companies. Product availability and specific provisions may vary by state.
1) Voya book of business data as of 12/31/19
2) VRIAC hardship withdrawal data analysis (7/1/18 – 6/30/19)
3) Pre-existing conditions may apply
4) The Willis Towers Watson 2018 Emerging Trends: Voluntary Benefits and Services Survey; Nov. 2017.
5) Gigi A. Cuckler et al., “ National Health Expenditure Projections, 2012–22 Slow Growth Until Coverage Expands And Economy Improves,” Health Affairs, (2013)
6) Careerbuilder Survey 2017
7) The Kaiser Family Foundation Health Stats; Nov. 2014 study. Reviewed and updated 11/20/19
8) Data from the National Institute of Mental Health Disorders, part of the National Institutes of Health
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KEYWORD: UNITED STATES NORTH AMERICA MINNESOTA
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SOURCE: Voya Financial, Inc.
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PUB: 02/12/2020 09:30 AM/DISC: 02/12/2020 09:31 AM