Why non-insurance benefits work
Affordability: Non-insurance benefits keep costs low by targeting specific services (e.g., telemedicine, prescription discounts).
Flexibility: They are bespoke solutions with no group minimus so employers can customize offerings to suit different workforces—small businesses, large corporations, or remote teams.
Reduced administrative risk: Since they are not insurance they do not require complex underwriting and administrative overhead.
Examples
Telemedicine and Virtual Primary Care: A Cigna Study referenced by the Alliance for Connected Care (2022), suggests that virtual care can reduce ER and urgent care visits by 19%.
Fertility Advocacy Services: Discount fertility services reduce costs for treatment that would cost from $12,000 to $40,000 per cycle.
Prescription Discounts: Prescription discount cards can help save employees up to 80% on medications reducing spend on high-deductible plans or needing more coverage options.
Non-insured benefits—sometimes called ‘discount plans’, “voluntary” or “supplemental” benefits—are slowly becoming an alternative to traditional insurance.
The key value they offer are affordability, prevention, and online access.
Healthcare expenses continue to escalate, challenging both employers and individuals. A 2024 study by the Kaiser Family Foundation, (“Summary of Findings - 10480.” KFF, 9 October 2024) shows that even with employer sponsorship, family premiums have increased by 20% over the past five years. Employers are looking for alternative solutions that are more cost-effective.
1. Understanding non-insured benefits
They are not insurance and work as an alternative to supplement existing insurance coverage. Non-insured benefits help reduce costs and make by addressing gaps in care, including mental health, prescription drugs, or fertility services. Non-insured programs help members get direct discounts.
2. Offering direct care health solutions
The US healthcare system is one that is based on curative health, not preventative but the fact is that every dollar spent on preventative health can save $6 in the future.
Providing low cost health care, innovative solutions for healthcare and adding flexible virtual options will reduce chronic conditions and in the long run reduce costs on part of the employer and individual..
Digital healthcare like telehealth, wellness apps, help users manage their health and wellness through platforms that have no geographic limitations, reducing the need for in-person visits.
Key Benefits
On-demand Access: 24/7/365 access to walk in clinics, telehealth etc with no deductibles to be met, at significantly lower costs than walk-in clinics.
Compassionate Engagement: Since physicians don’t spend time with underwriting, claim processing etc. they have more time and can offer more compassionate care.
4. Beyond traditional healthcare savings
Discount programs include deals on dental, vision, travel, entertainment, and more. This helps relieve financial pressure for individuals and employees on tight budgets.
Examples
Prescription discount cards: Lower out-of-pocket costs for essential medications.
Virtual health: Telemedicine without borders-access when you travel or on holidays.
Rethink healthcare
Rising healthcare costs need a reset of the traditions of healthcare. We need to adopt a strategic mix of non-insured benefits, prevention-focused programs, digital solutions, and discount packages, while keeping expenses in check. Translating into more accessible, affordable care—both for everyday needs and unexpected health challenges.
In a system where insurance premiums and medical bills continue to grow, non-insured benefits and related cost-saving strategies present a viable pathway to healthier, more financially stable outcomes for everyone involved.