The Forgotten Toll COVID-19 Takes On Workers’ Finances

By Stephanie Shields

2020 was set to be a banner year: The U.S. economy was riding high on the longest economic expansion in national history, the unemployment rate was near an all-time low, and human resources managers were largely focused on how to attract and retain the best talent.

However, the pandemic changed all of that. The result was many businesses struggling to stay afloat and HR managers trying their best to support employees, many of whom are stressed emotionally and financially during this difficult time.

In a recent white paper, “Stronger on the Other Side,” Aflac examines how COVID-19 has affected the benefits landscape. The current conditions may be difficult, but adept brokers are well positioned to help clients navigate the open enrollment season and beyond.

The Toll Of COVID-19

When COVID-19 was first detected in the U.S., questions abounded about its spread, symptoms, long-term effects and the best course of treatment. In the months since, the world’s understanding of the virus has improved and answers to such key questions are coming to light.

One area that has become clear is the virus’s significant short-term impact on the upper and lower respiratory systems. Although most symptoms subside over time, some persist for weeks and months, resulting in an extended recovery. According to the Mayo Clinic, some other symptoms and potential long-term side effects of COVID-19 may include lung and heart damage, blood clots, stroke and chronic fatigue.

One COVID-19 complication that doesn’t get as much attention as its physical and emotional toll is the financial impact it can have on those who become sick from it. A study earlier this year by America’s Health Insurance Plans found the average cost to treat a patient hospitalized in intensive care with COVID-19 could exceed $30,000. However, health insurance is not likely to cover 100% of the costs, including out-of-pocket expenses such as copays, deductibles and lost income from being unable to work. Help is needed for the long-term financial strain resulting from a potentially prolonged and complicated recovery.

Benefits That Meet The Moment

The pandemic has led people to reconsider the efficacy of their benefits plans. Many employees are taking a second look at their benefits to determine whether they can get the help they need for the expenses health insurance may not cover. In fact, the 2020-2021 Aflac Workforces Report found that nearly half (49%) of employees said the pandemic has been a wake-up call to devote more time to researching and selecting the best coverage options for their needs.

As brokers continue to work hard to help their clients find the best coinsurance percentages and deductibles they can afford, supplemental insurance coverage can stand out as a noteworthy offering to help employees better prepare for unexpected injuries or illnesses such as COVID-19. In fact, more than 80% of employers have expressed interest in offering supplemental insurance plans that cover costs associated with the coronavirus or a future pandemic, the Aflac Workforces Report revealed.

Benefits for supplemental coverage insurance can be used however you want, including helping with costs associated with a hospital stay, treatment and transportation as well as everyday expenses such as groceries or gas for the car. Another option in the case of a prolonged recovery is short-term disability insurance, which can help with everyday living expenses for those unable to work due to a covered illness or injury.

Lessons Learned From 2020

One lesson 2020 has taught us is the importance of preparing for the unexpected — whether it’s the potential impacts of COVID-19 or another surprise event. In light of current conditions, brokers can help clients build a benefits package that helps provide employees with additional financial protection now and in the future.

Stephanie Shields is senior vice president of broker sales at Aflac. Stephanie may be contacted at [email protected].