Article Transforming benefits through cost control: what really works

Rising healthcare costs are placing growing financial pressure on both employers and employees. Employers are struggling to provide competitive benefits while staying within budget. As premiums continue to climb, many are shifting a greater share of healthcare costs to employees. Employer contributions for family coverage now average $20,143 annually, forcing organizations to rethink their benefits strategies.¹

It’s no surprise that one in three employers say that managing costs is their biggest benefits concern and 93% have taken steps to reduce healthcare costs, though many have achieved only limited success, according to The Hartford’s² most recent Future of Benefits Study.³

Employees are feeling the strain as well:

• Half (50%) of employees are unsure they can afford future medical care expenses, according to The Hartford’s Future of Benefits Study.⁴
• Just 47% of Americans indicate they have sufficient liquidity or access to funds to cover a $1,000 emergency expense.⁵
• 60% of Americans say they are unable to cover medical costs in the event of a serious accident or illness.⁶
• Roughly 48% of Americans say their financial situation was worse in May than a year ago.⁷

As costs continue to rise, employers need benefits strategies that improve employee health while delivering measurable cost savings. Supplemental health⁸ insurance can be a key part of the solution. 

Beyond Medical Coverage: Why Supplemental Health Benefits Matter More Than Ever

Supplemental health insurance is exactly that—supplemental. It isn’t designed to replace core health benefits, but to help employees manage the everyday expenses and financial risks their medical plan doesn’t cover. Coverage such as accident, critical illness, and hospital indemnity insurance allow employers to strengthen their benefits package while giving employees an added layer of financial protection.

Interest in supplemental health benefits is growing, particularly among small and mid-sized employers. The Hartford’s Future of Benefits Study found that among small and mid-sized employers that don’t currently offer supplemental products:⁹

• 41%are interested in critical illness insurance
• 46% are interested in accident insurance
• 37% are interested in hospital indemnity insurance

“Medical, dental, life, and disability insurance remain the foundation of most employee benefits packages,” says Andrew Marsh, Vice President of Product at The Hartford. “What’s increasingly important is offering a broader suite of employee-paid supplemental benefits at group rates, giving employees more choice and greater financial security.”

Supplemental Health Designed for Today’s Workforce

Only 47% of Americans have sufficient liquidity or access to funds to cover a $1,000 emergency expense.¹⁰ Being unable to work due to illness or injury would have a significant and potentially devastating on household finances. 

Employees can use supplemental health coverage to pay for everyday expenses like groceries, rent, childcare, and more after a qualified event. 

For employees without a hefty emergency fund, supplemental health insurance often offers an affordable fixed premium each month. In fact, 61% of U.S. workers consider supplemental health as part of their overall financial plan.¹¹

Choice, Education, and a Better Benefits Experience

According to Marsh, employers can better support a diverse workforce by offering a broader range of benefits that employees can tailor to their unique needs.

“The future of benefits is personalization,” explains Marsh. “Employees want coverage options that fit their lifestyle and personal circumstances.”

The right product mix depends on an employer’s workforce demographics, and the risks employees are most likely to face. For example, a small dermatology practice with a large younger female demographic may see higher enrollment in hospital indemnity insurance to help with pregnancy-related costs. 

“People naturally want to lower their premiums,” says Marsh. “But it’s equally important that they have the right level of protection in place. Our goal is to help employees understand what the coverage does, what risks it helps address, and make confident decisions based on their individual needs, not simply on cost alone.”

“Employee education is a shared responsibility”, notes Marsh. “The employer, the insurance carrier, and the broker all have an obligation to make sure employees understand the products they are purchasing.”

Connecting Benefits for a Better Employee Experience

An integrated ecosystem can also help move the needle on costs, particularly for small and mid-sized businesses. Two thirds (64%) of employers cite lengthy resolution times as the biggest hurdle in managing multiple carriers.¹² Moving from individual products to an integrated ecosystem helps alleviate burden for HR teams. Interconnected systems create more seamless onboarding, claims intake and management, and utilization visibility. Together, that provides HR teams with more customized views into its workforce to make better decisions.

But Marsh says cost savings are only part of the equation. “Driving efficiencies through technology and streamlined administration is critical, but the ultimate measure of success is the experience employees have when they need their benefits most,” he explains. “When a claim occurs, people aren’t thinking about premiums or processes. They’re looking for support, reassurance, and a carrier that delivers when it matters most.”

The Hartford Insurance Group, Inc., (NYSE:HIG) operates through its subsidiaries, under the brand name, The Hartford®, and is headquartered at One Hartford Plaza, Hartford, CT 06155. © August 2026 The Hartford

• ¹ _{https://www.kff.org/health-costs/2025-employer-health-benefits-survey/}
• ² _{The Hartford Future of Benefits Study, The Hartford, 2026}
• ³ _{The Hartford Future of Benefits Study, The Hartford, 2026}
• ⁴ _{The Hartford Future of Benefits Study, The Hartford, 2026}
• ⁵ _{https://www.bankrate.com/banking/savings/emergency-savings-report/}
• ⁶ _{https://news.gallup.com/poll/708905/affordability-dominates-americans-financial-worries.aspx}
• ⁷ _{https://www.newyorkfed.org/newsevents/news/research/2026/20260608}
• ⁸ _{Supplemental Health products (Accident, Critical Illness and Hospital Indemnity) are independent and do not coordinate with any other health coverage.}
• ⁹ _{The Hartford Future of Benefits Study, The Hartford, 2026}
• ¹⁰ _{https://www.bankrate.com/banking/savings/emergency-savings-report/}
• ¹¹ _{The Hartford Future of Benefits Study, The Hartford, 2026}
• ¹² _{The Hartford Future of Benefits Study, The Hartford, 2026}