Beyond health: Exploring Additional Employee Benefits

Health insurance is the centerpiece of any employee benefit package — but it’s rarely the whole story. For employers in DC, Maryland, and Virginia trying to attract and retain good people, the benefits that sit alongside medical coverage often matter more than most employers realize. Here’s a practical look at what works and why.

Voluntary Life and Disability Insurance

Voluntary life and disability coverage is offered through the employer’s group plan but paid entirely or largely by employees. The value for employees is significant: group rates are typically far lower than what an individual could get on their own, and enrollment is often guaranteed-issue (no medical underwriting) during initial enrollment periods. For employers, the cost is minimal and the benefit to employees is real.

Long-term disability is the product most employees underestimate most. A serious illness or injury that keeps someone out of work for months can be financially devastating without it. If your group plan doesn’t include employer-paid LTD, making it available voluntarily at group rates is one of the highest-value additions you can offer.

Supplemental Health Products

Accident, critical illness, and hospital indemnity insurance are designed to fill the gap between what major medical pays and what employees actually owe out of pocket after a serious health event. As employer health plans have shifted toward higher deductibles and coinsurance, these products have become increasingly practical. They’re employee-paid through payroll deduction at low group rates, and the claims process is straightforward — a qualifying event triggers a cash payment directly to the employee.

Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)

FSAs and HSAs let employees set aside pre-tax dollars for qualified healthcare and dependent care expenses. HSAs are available only with high-deductible health plans and can accumulate and roll over year to year. FSAs are more broadly available but typically have a use-it-or-lose-it component. Both reduce employees’ taxable income and help stretch their healthcare dollars. Setting these up adds administrative work, but most payroll platforms handle it with minimal friction.

Dental and Vision

These are expected by most candidates at this point. Employee contributions are modest, employer contributions can be as well, and the alternative — candidates asking why dental and vision aren’t offered — is a harder conversation during recruiting. Group dental typically covers preventive care at 100%, basic services at 80%, and major services at 50% after deductible. Vision coverage typically covers annual exams and an allowance toward frames or contacts.

Retirement Plans

A 401(k) with even a modest employer match is a significant retention tool. Employees value deferred compensation that grows tax-advantaged, and an employer match is effectively a pay increase that doesn’t show up in base salary comparisons. For small employers who haven’t set up a 401(k) because of the administrative complexity, SECURE 2.0 Act changes have made it more accessible than before.

Building a Package That Works

Capitol Benefits works with employers across DC, Maryland, and Virginia to put together benefit packages that balance cost, compliance, and what employees actually value. If you’re reviewing what you offer or trying to figure out where to add the most impact for the least cost, we’re glad to help. Contact us here.