Identifying New Opportunities for Innovation in Supplemental Benefits

Supplemental benefits have proven their value during the coronavirus pandemic, making over-the-counter medications, essential goods, and even groceries available to individuals struggling to access much-needed supplies to stay well during a difficult time.

In many ways, the pandemic has become a seminal moment for these benefits. Health plans and employers have new opportunities to expand these offerings to make prevention a staple of member experience. Growing awareness of the social determinants of health and their impact on health status and outcomes are leading these organizations to be even more intentional about their approaches to supplemental benefits.

"Supplemental benefits are all focused on prevention," says Sana Hashmi, Vice President of FirstLine Benefits, "The idea is to try linking the social determinants of health to actual benefits, such as OTC medications, nutritional counseling, and gym reimbursement. They are not necessarily medical or dental in nature, but they go a long way toward making people comfortable with contributing to their overall well-being."

These wrap-around benefits are integral to supporting members beyond episodes of care or one-time medical treatments and providing a holistic health experience for individuals and their families. But a significant challenge remains. How do we increase awareness about the availability of supplemental benefits included in an individual's coverage?

"Many people have access to these benefits, but they don't know they're there," Hashmi maintains. "They're not aware there's this whole category within their plans. Raising awareness is key because so many members think these things aren't included with their plans, and they are shocked to find out that the opposite is true."

Another challenge falls on the shoulders of employers: the need to emphasize their value to their workforce.

"Benefits are easily dismissed when the focus is on medical networks and pharmacy formularies," Hashmi explains. "We spend a significant amount of time with employers, encouraging them to think beyond these core categories to prevent supplemental benefits from being an afterthought. If we put more time and consideration into what supplemental benefits are, what they should be, and how they can help drive long-term prevention — that will go a long way."

According to Hashmi, employers that give these benefits a try are quick to realize how they can change the lives of members. Often this realization spurs their interest in further innovation in health plan design and selection.

Early signs show innovation centering on social determinants of health can impact a member's ability to access services that reduce their health risks, from the mental to the economic.

"We're extremely excited about opportunities in the mental health arena. We're just getting our arms around a stress-based kit with a side of lifestyle condition coaching as we partner with up-and-coming startups in this space," says Hashmi. "With everything that's happened this year and everything that still needs to unfold when it comes to COVID, there's a huge need that is going to come forth."

Alongside the physical and mental health impact of the pandemic, financial health has also come to the fore.

"Financial health is another major area of interest," Hashmi continues. "We have reached out to the fintech sector to determine ways to help individuals think about purchasing goods, budgeting, and financial planning. This past year has introduced many significant life-changing events, and members need consumer-friendly solutions to navigate all the uncertainty."

Health plans and employers must address members' current health needs and guide them toward a greater focus on prevention and well-being. Health plans must therefore go back to the drawing board to identify new forms of innovation. One major focal point will be on customizable solutions rather than a top-down approach to benefit design, with a keen emphasis on supplemental benefits.

"This last year proves it's never one-size-fits-all. We had individuals who couldn't take one day off — our healthcare and frontline workers. What they were dealing with during the pandemic was very different from those working remotely," observes Hashmi.

"The more they know about members' needs, the more customized supplements can be. And frankly, they need to be because of their correlation to member health and well-being. Ultimately, today's environment has made a strong case for complete customization. It is not only the right thing to do, but it is also the future. Everyone's needs are unique."

A positive member experience begins with understanding the unique needs of individuals. Supplemental benefits will play a vital role in future benefit design so that health plans and employers are able to deliver benefits that members are expecting and demanding, both today and tomorrow.

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About the Sponsor

The team at FirstLine Benefits™ works with health plans to make the healthy choice the easy choice for their members. They do this by delivering products and programs that give people access to products they need to make better decisions for their health.