Employers Push Critical Illness Plans Amid Health Risks
•February 18, 2026
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Why It Matters
Critical‑illness coverage protects employees from catastrophic out‑of‑pocket costs, directly supporting productivity and lowering employer‑borne turnover expenses.
Key Takeaways
- •31% of workers filed critical illness claims last year
- •High‑deductible health plans leave expense gaps for serious illnesses
- •89% of informed employees rate critical illness coverage as helpful
- •78% of U.S. workers have at least one chronic condition
- •Employers see lower turnover when offering supplemental critical illness benefits
Pulse Analysis
The surge in chronic health conditions is reshaping the U.S. benefits landscape. High‑deductible health plans, while popular for cost control, often leave a dangerous financial void when employees face heart attacks, strokes, or cancer diagnoses. Those gaps translate into lost productivity, increased absenteeism, and heightened stress for both workers and employers. By recognizing the systemic risk posed by untreated medical expenses, companies are seeking supplemental solutions that bridge the shortfall and safeguard their talent pool.
Critical‑illness insurance has emerged as a pragmatic answer to that gap. Equitable’s 2025 Consumer Finance Survey reveals that nearly one‑third of workers have already filed a claim, underscoring the product’s relevance. Yet confidence in understanding the benefit lags, with only half of respondents feeling knowledgeable. When education improves, satisfaction soars—89% deem the coverage very helpful. For employers, the payoff is tangible: reduced turnover, lower short‑term disability costs, and a more resilient workforce that can focus on recovery rather than finances.
Strategically, benefit leaders must weave critical‑illness coverage into a broader narrative of financial wellness. Timing communications around health‑focused observances like American Heart Month amplifies engagement, while integrating the benefit with HSAs and other supplemental policies creates a cohesive safety net. Continuous dialogue—beyond open enrollment—ensures employees recognize the real‑world value of the lump‑sum payouts, fostering loyalty and positioning the organization as a forward‑thinking employer in a competitive talent market.
Employers push critical illness plans amid health risks
Key Insight: Discover how critical‑illness coverage complements high‑deductible plans to close financial protection gaps.
What’s at Stake: Unmanaged exposure could drive absenteeism, turnover, and employer‑sponsored cost burdens.
Supporting Data: 31% of American workers filed a critical‑illness claim in the past 12 months.
Source: Bullets generated by AI with editorial review
Each year, heart disease exacts a staggering toll — not only in lives lost, but in hundreds of billions of dollars in lost productivity for U.S. workers and employers. Those who survive a heart attack or stroke frequently confront a second battle: mounting medical bills and unexpected expenses that traditional coverage doesn’t fully absorb.
Amid that strain, a little‑used workplace benefit — critical illness insurance — can provide a financial lifeline.
“It’s an important part of the benefits portfolio for employees,” says Stephanie Shields, head of employee benefits at Equitable. “It plays a big role in complementing medical plans by closing the gap that’s created by high deductible plans.”
When a worker is diagnosed with a serious condition — like a heart attack, stroke or certain cancers — critical illness insurance can provide a lump‑sum payment. Unlike regular health insurance, which mainly covers hospital bills and treatment, this money goes directly to the employee and can be used however they need: to cover living expenses, lost income, travel for care, or home support during recovery.
Chronic health conditions on the rise
According to Equitable’s 2025 Consumer Finance Survey, more than a quarter (31%) of American workers filed a critical‑illness insurance claim within the last 12 months. Less than half (49%) had low confidence in their understanding of critical‑illness insurance, but once they learned what the benefit included, 89% found it very helpful.
Eighty percent of Americans worry that an unexpected medical expense could derail their financial goals, with more than a quarter of this group indicating that a bill under $1,000 would cause financial hardship.
The number of employees managing chronic health conditions continues to rise, and this is one of the main drivers of high‑cost medical claims, says Shields. According to research by the Integrated Benefits Institute, more than 78% of employees in the U.S. now have at least one chronic condition, an increase of 7% since 2021.
Shields says it’s up to employers and benefit leaders to help workers understand the programs they offer and how they work together, starting with medical insurance.
“Some people think, ‘I have medical coverage, and I’m covered if something were to happen,’” she says. “But it’s more than just having coverage for the core aspects of the event — it’s all of the additional costs that are associated with it. So what can HSAs be used for? How do supplemental benefits like critical illness, accident insurance and hospital indemnity work? We’re talking about things that almost entirely require a hospital visit, and that’s a set of expenses that isn’t always 100% covered.”
Increasing engagement
February is American Heart Month, and Shields says it’s a good time to raise awareness about the dangers of cardiovascular disease and the benefits of critical‑illness insurance.
Heart disease is the leading cause of death for men, women and people of most racial and ethnic groups, according to the Centers for Disease Control and Prevention. In 2023, almost one in four deaths in the U.S. was caused by heart disease.
Nearly half of U.S. adults have high blood pressure, putting them at risk for heart disease and stroke. Only one in four people with high blood pressure has it under control.
Shields encourages benefit leaders to have meaningful conversations throughout the year that are grounded in everyday, real‑life stories. Timing discussions about the importance of critical‑illness insurance with American Heart Month presents benefit leaders with “a great opportunity for engagement,” she added.
“You don’t only want to have these conversations during open enrollment. You get your taxes done once a year. You submit it by the deadline, and you put it out of your mind. That’s not how we should treat benefits.”
Reporter, Employee Benefits News
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