It's a new year and plan sponsors are one step closer to the coverage decisions that will accompany the 2014 implementation of the Affordable Care Act. As a prudent measure, advisers should begin conversations on tomorrow's benefit offerings today. A strong voluntary benefits strategy can bridge the coverage gaps that may result from employers re-positioning their sponsorship of traditional health insurance.

Nobody has a crystal ball on what employers will do in 2014 and beyond. But one thing is certain: There will be more options for both employers and individuals to purchase health insurance, starting with the state run Health Insurance Exchanges that are at the center of the Affordable Care Act. These new distribution outlets could significantly impact the way employers view their role with all of the benefits they offer employees. The 2011 Employer Survey on U.S. Healthcare Reform from McKinsey & Co. found that as many as thirty percent of companies that currently offer employer-sponsored health insurance would "definitely" or "probably" drop coverage in the years following 2014.

Chief concerns cited by survey respondents were how they would compensate employees if they did cease to provide coverage, and how they would attract and retain top talent. Voluntary benefit offerings are an increasingly popular way to address such concerns. In fact, 81 percent of employers currently offer voluntary benefits to their employees, according to the July 2011 Employer Healthcare Benefits Survey. What's more, one-third of employers plan to offer new voluntary benefits to replace existing employer-paid and contributory benefits, according to LIMRA's 2011 Voluntary Worksite Benefits survey.

Delivering flexibility

"We're letting the advisers spend their time advising clients about the overall benefit approach for their employees. Then we make sure it's not a burden on the adviser or plan holder to execute and administer the plan," explains Christopher Swanker, vice president of Worksite and Specialty Markets at The Guardian Life Insurance Company of America.

For example Guardian's flexible voluntary life product includes an innovative "step-up" option that allows employees to buy a lower amount of coverage the first year and add coverage at a later date—without having to answer medical questions. There's also the option to add an automatic cost-of-living increase, which increases coverage without increasing the premium.

"Your coverage increases a little bit each year," says Swanker. "So, over time it helps your life insurance benefit keep pace with your changing needs and with inflation."

Guardian Disability Choice, a voluntary long term- and short term-disability program, emphasizes a simplified enrollment approach, yet allows employees to select the level of coverage that best suits their needs and budget. The benefits are based on increments or flat amounts, rather than correlating it to a percentage of the employee's salary. This also eliminates the need for an employee census in order to generate a proposal.

Disability income insurance provides a benefit to help pay a portion of ongoing expenses, but the burden of bills can mount when dealing with a major illness. Guardian's critical illness insurance is truly innovative in that it not only covers five serious illnesses with a lump sum benefit it also provides a per day benefit for hospital stays for any other medical condition or injury. Critical Illness pays the benefit before disability insurance, which often has an elimination period before benefits are paid. Employees value the financial protection provided by critical illness coverage. According to a 2007 Harvard University study, medical bills are to blame for more than 60 percent of personal bankruptcies. A Guardian study found that 70 percent of consumers feel their families would experience financial hardship or stress if faced with a critical illness.

Guardian's dental programs also have hassle-free enrollment and do not require a census. Not only does Guardian's voluntary dental program offer one of the nation's largest networks—over 74,000 dentists at more than 169,000 locations—it offers flexible plan designs and educational tools such as dental cost estimators and a "find a provider" site. Guardian also works to ensure the dental network meets the plan holder's needs with a customized recruitment strategy targeted at bringing in the right dentists that members will seek care from, at the right discounts to save them money.

Enrollment made easy

Tight budgets mean human resource departments are forced to do more with less. Guardian's self-service solutions and online enrollment tools take the administrative burden off benefit managers. From personalized enrollment kits to consolidated payroll deduction, Guardian has the enrollment process down to a science and knows what it takes to increase employee participation.

Through the Enrollment Success Program, Guardian uses best practices for enrollment and will actually waive participation requirements and offer additional underwriting concessions for eligible companies that follow their enrollment recommendations.

The EnrollmentWorks program features decision-support tools, carrier data feeds, consolidated bill presentment, pre-formatted spreadsheets and common file formats—meaning fewer headaches for employers. Guardian's EnrollmentWorks program also provides employers the ability to offer an online multi-carrier enrollment and eligibility platform. This system allows participants to enroll online for plans from Guardian or any other carrier. So, even if a client has many carriers they can offer a single, integrated experience.

For Dallas-based brokerage Foster Financial/Planned Benefits, EnrollmentWorks became part of its business development strategy. Its first client using EnrollmentWorks immediately increased participation in voluntary long-term disability from 10 percent to 40 percent, and voluntary life from 11 percent to 18 percent.

Thinking big picture

"Employers should make sure that the actions they're taking today are consistent with that vision of where they want to be in a couple of years," says Swanker. Now more than ever, advisers' value isn't contained in a single policy cycle, he says.

"If your plan is to build a broad portfolio of voluntary products for your employees to pick from over time, then add one this year, add one next year and build it out over time. Have an end game in mind."

Vendor offerings are expected to continue adapting in the coming years. Guardian sees product development as a key initiative in preparing for the changing benefits landscape.

"We're continuing to build out our product portfolio to ensure we have all the products that employers and advisers need," says Swanker.

Through their conversations in 2012, employers and advisers can lay the groundwork for successful benefit offerings in a 2015 and 2016 world.

Visit www.aboutemployeebenefits.com for information about how Guardian can help you create your voluntary strategy.