Employers can treat many voluntary offerings as ERISA plans (enabling them to cover all or part of the applicable premiums) or maintain an arms-length relationship limited to collecting premiums and relaying them to the carrier. And, depending on corporate needs and carrier willingness, employers may choose to:

Confine voluntary benefits to the annual open enrollment in order to consolidate eligibility, payroll and enrollment files.
Offer mid-year enrollments, which provide employees with more flexibility to elect coverage on an as-needed basis.
Allow employees to enroll any time of the year, as the carrier "owns" eligibility and enrollment administration.When communicating about voluntary benefits, employers must tread carefully. While it's important to communicate the availability and value of voluntary offerings, employers must avoid the appearance of promoting or sponsoring these programs, lest they inadvertently subject them to ERISA regulations and requirements. Using the carrier, broker or a third-party enroller can ensure employees have the information they need to make an informed decision.
Voluntary benefits provide yet another way for employees to personalize their coverage. Employee needs will continue to change in response to both personal life events—marriage or divorce, having children, relocating—and other major health events. With voluntary benefits, employees gain the peace of mind that they can expand their coverage when necessary. This extra layer of protection and confidence is increasingly appealing in today's uncertain world and can make a difference in improving employee satisfaction and retention.

Kim Buckey is vice president of client services at DirectPath.

Instant Insights /

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