Cigna links supplemental benefits with medical plans

Cigna Healthcare is working to streamline medical and supplemental benefits, unveiling today a new product that will let members access both from a single touchpoint.

The product, Medical with Smart Coverage, will be available to employers with between 500 and 2,999 employees starting in January 2027. The plan lets employers offer a high-deductible health plan with $7,000 in supplemental cash benefits tied to covered health events. Supplemental benefits will cover anything from medical expenses to certain everyday costs, such as transportation, childcare or even groceries.

The move comes as employees navigate increasingly high medical costs, according to Bryan Holgerson, president of Cigna Healthcare U.S. and executive vice president of Customer Health Outcomes at The Cigna Group.

"People want the peace of mind that comes from knowing they're covered when an unexpected or costly health event occurs, especially as rising hospital and prescription drug costs, inflation and other financial pressures continue to strain household budgets," Holgerson said in the announcement.

"That's why we're bringing medical and supplemental benefits closer together," Holgerson added. "By making it easier to access additional funds when they're needed most, we're helping people feel more financially confident while giving employers new ways to offer affordable, meaningful benefits."

Supplemental benefits are typical offerings within an employer's benefit package. They help fill in gaps that medical coverage might leave behind, such as accident insurance, critical illness insurance, hospital indemnity coverage and ancillary benefits, like those that cover health-related social needs or even vision insurance.

Usually, supplemental benefits stand apart from medical benefits. For example, a member that has been seriously injured in a car accident will need to file claims with their medical plan and any relevant supplemental benefits plans separately, even if they're provided by the same carrier.

This can create a fragmented payer experience and even dissuade people from using their supplemental benefits, if they are aware of those benefits at all. Indeed, Cigna data gathered in partnership with Ipsos shows that fewer than a third of members understand how supplemental benefits work, such as that they can be used for everyday expenses that are impacted by serious illness or injury.

Simple File Sync Plus from Cigna Healthcare intends to solve that problem, according to Paul Virtell, president of Supplemental Health at Cigna Healthcare.

"When someone experiences an unexpected or costly health event, the last thing they want to do is sort through benefits and paperwork," Virtell said in the press release. "Many people have access to cash benefits that can help pay for medical or everyday expenses, but they may not know where to find them or how to use them. Smart Coverage helps connect people to that support more seamlessly, so they can focus on their health."

Simple File Sync Plus is currently available to eligible clients, but Cigna said it plans to expand the product over time.

Sara Heath is an executive editor at Xtelligent Healthcare Media, where she covers patient engagement, healthcare policy and health IT.