Revisiting Supplemental Health Benefits: Helping Employers Control Costs Without Sacrificing Care

Healthcare costs are climbing at an alarming rate. In 2025, employers expect to see a 9.2% increase in healthcare expenses, with small businesses hit even harder at over 10%. At the same time, nearly six in ten Americans don’t have enough savings to cover a $1,000 medical bill.

For business owners, HR leaders, and brokers, this creates a tough reality: balancing financial pressures while still providing employees with the protection they need. This is where supplemental health benefits have become a strategic tool — not just a perk, but a necessity.

At BlackIron, we’ve seen firsthand how well-structured supplemental benefits help employers maintain affordable group health plans while giving employees a much-needed safety net. Below, we’ll explore three areas where businesses and their broker partners can rethink supplemental coverage to deliver greater impact.

________________________________________

1. Balancing Cost Control With Financial Protection

High-deductible health plans now cover more than half of private industry workers, shifting a larger share of upfront medical costs to employees. For many, this creates a financial strain that makes supplemental benefits far more than an optional add-on.

By covering expenses tied to coinsurance, deductibles, and uncovered treatments, supplemental health plans can protect employees from unexpected bills — while helping employers preserve their core health plan design. Some businesses are even funding these benefits in full or in part, encouraging higher enrollment and reducing overall workforce stress.

When employees know they have coverage for the unexpected, they’re more likely to seek care early, stay productive, and remain engaged at work — all of which improves ROI on benefits investments.

________________________________________

2. Simplifying Benefits Delivery Through Innovation

The value of supplemental health coverage depends on whether employees actually understand and use it. Today’s workforce expects convenience, personalization, and speed — and carriers are responding with new approaches to plan design, enrollment, and claims processing.

Mobile app access, digital tools for decision-making, and fast claims payouts are now becoming standard. Many carriers are even offering lump-sum payments within days of a diagnosis, helping employees quickly manage out-of-pocket costs.

For example, some modern products go beyond traditional accident or hospitalization triggers by providing payments for thousands of covered conditions. This level of innovation helps bridge the gap between high medical costs and accessible care.

________________________________________

3. The Essential Role of Brokers and Advisors

As healthcare grows more complex, brokers and consultants are essential partners in guiding employers through supplemental benefit options. It’s not just about price — it’s about ensuring flexibility, user-friendly technology, and strong service models.

The most effective supplemental health programs include:

• A broad portfolio (life, disability, dental, vision, and voluntary options)

• Flexible funding strategies

• Guaranteed-issue coverage with no pre-existing condition exclusions

• Mobile-friendly platforms with fast, digital claims processing

• Dedicated service teams that support both employers and employees

When these elements come together, employers gain a program that supports workforce financial health while staying aligned with budget goals.

________________________________________

Why Supplemental Health Benefits Belong in Every Strategy

Rising healthcare costs are not slowing down — and neither are employee expectations. Employers who want to stay competitive need to think beyond core medical plans and leverage supplemental health benefits as a strategic advantage.

At BlackIron, we help employers and brokers design benefit strategies that balance cost control, employee protection, and simplified delivery. With the right guidance, supplemental benefits don’t just fill gaps — they create a stronger, more resilient workforce.