Supplemental insurance plans help ease the sting of high-deductible health insurance

Overall inflation has gone up nearly 4% since 2025.¹ But that doesn’t mean all costs have risen at that level. In fact, the average annual premium for employer-sponsored health coverage has increased by 6% for single coverage and 7% for family coverage.²

You — and your workforce — are paying for that inflation.

High-deductible health plans (HDHPs), defined as insurance plans with a deductible of at least $1,700 for individuals or $3,400 for a family in 2026,³ are one way business leaders have tried to provide coverage for their workforce in this environment of inflation. HDHPs can help employees keep pace with the rising cost of health care and insurance by setting a high deductible in exchange for more affordable premiums.

But high-deductible health plans can have the unintended consequence of pressuring employee finances — even though insurance is designed to avoid putting people in financial risk when faced with health challenges. Employers are then left wondering how they can respond to their employees’ health care and financial needs without simply shouldering the entire cost themselves, an untenable prospect for most businesses.

One way through that challenge: supplemental insurance plans, which can benefit employees by helping to interrupt the self-fueling cycle of financial and health stress and have the potential to help employees maintain financial stability and physical wellness.

High-deductible health plans put employers under pressure too

Employers may technically choose to offer high-deductible plans to their workforce, but the cost of health coverage shows that it’s not much of a choice at all. They face relentless pressure to contain health insurance costs, if they’re able to offer coverage at all. Like the previous year, 2024 saw the cost of annual family premiums for employer sponsored health insurance rise 7%, surpassing increases in inflation and therefore compounding the financial concerns of many employees.²

Nearly half of employers have stated that remaining competitive with their total benefits package is one of their biggest challenges. The consequences are predictable and growing. In 2025, 66% of employers stated that benefits costs increased in the last year.⁴

The benefits of supplemental insurance: Supporting employees with HDHPs

Enter a crash barrier between families and unexpected medical bills: supplemental insurance. Some employees will encounter health bills that overflow the parameters of employer medical benefits, and supplemental insurance can provide assistance. Others will have incidental health needs but won’t hit their deductibles, leaving them responsible for most costs — and supplemental insurance can provide help to employees by paying cash benefits for covered events, even if they don’t hit their major medical plan’s deductible.

Employees can decide which type of supplemental coverage may best meet their needs. Families might go for supplemental accident insurance for added protection for injuries, while empty nesters might prioritize critical illness insurance to help cover serious conditions like heart attacks and strokes.

A supplemental insurance plan also fits in with health savings accounts, or HSAs. People with high-deductible health plans can’t use their HSAs to pay for supplemental insurance, but they can use supplemental insurance to help with health-related expenses. Let’s say that a staff member has a covered health condition. They could use their HSA to pay for eligible expenses, such as a blood pressure monitor. But they also want to buy things that help their condition and overall health. If they have an eligible Aflac insurance plan, Aflac would pay benefits directly (unless otherwise assigned) that they can use to help with out-of-pocket expenses.

High deductible, high mental toll

The benefits of supplemental insurance go beyond helping cover costs not paid for by health insurance. Supplemental plans can help protect against the financial burdens caused by illnesses or accidents.

Supplemental insurance coverage doesn’t erase all the burdens of high-deductible health plans for you or your workforce, but it can help lessen the financial burden. To discuss the supplemental insurance coverage options that are right for your business, contact your Aflac benefits advisor today or visit Aflac.com/business.