4 Tips for Agents Looking to Grow Their Supplemental Health Care Book of Business

• By: Olivia Overman
• October 27, 2025

The U.S. supplemental health market was valued at $38 billion in 2024 and is forecast to grow to approximately $66 billion by 2034, according to Towards Healthcare. In the first quarter of 2025, carriers reported sales totaling $1.3 billion in new annualized premiums for supplemental health insurance products, with group workplace and individual workplace supplemental health product sales accounting for 88% and 12% of all new premiums, according to LIMRA.

Complementing core health plans, supplemental employee health plans that include coverage such as accident, cancer, critical illness and hospital indemnity insurance help cover costs that aren’t fully paid for by a person’s health insurance plan. In a time when health care costs continue to rise for many Americans, this coverage is considered essential for financial well-being.

“The supplemental health benefits market has seen a notable shift toward personalization, digital enablement and financial wellness over the past few years,” says Lindsey Murray, president of group benefits at Nationwide. “Employees are looking for benefits that go beyond traditional coverage, helping them manage rising out-of-pocket costs and support their overall well-being. Employers, in turn, are seeking flexible, scalable solutions that can meet diverse workforce needs.”  

Yet, while 93% of organizations offer a medical plan for their workers, that number drops to 64% when it comes to offering supplemental health benefits, according to the Guardian’s “14th Annual Workplace Benefits Study 2025.” Independent agents can play a crucial role in the growth of the supplemental health market.

“Independent agents are the bridge between carriers and clients,” Murray says. “Their ability to educate, personalize and advocate is critical to driving adoption and satisfaction. By understanding the unique needs of each employer and employee population, agents can tailor benefit strategies that truly resonate and deliver long-term value.” 

Today, employees view supplemental health benefits as a valuable addition, with 3 in 5 workers who own supplemental health products saying they’re extremely or very happy in their current job, according to the Guardian report.

“The shift toward healthier lifestyles is reshaping how employees engage with their benefits,” Murray says. “More individuals are prioritizing preventive care, wellness routines and financial preparedness, seeking to avoid costly medical interventions whenever possible. Supplemental health plans play a key role in supporting this trend by offering financial protection that complements a proactive approach to health.” 

“Plans like accident, critical illness and hospital indemnity don’t just help cover unexpected costs—they also give employees peace of mind, allowing them to focus on staying healthy rather than worrying about what might happen if they get sick or injured,” Murray says. “This sense of security can actually encourage healthier behaviors, as employees are more likely to seek early care or participate in wellness programs when they know they’re financially protected.” 

For employers, supplemental health benefits are seen as differentiators when it comes to recruitment, retention and employee satisfaction, according to a 2024 New York Life report. Among employees, supplemental health insurance is a top benefit they are most interested in receiving from their employer (50%), the report says.

For agents who want to focus on their supplemental health benefits book of business this year, Murray says to focus on:

1) Educating with empathy. Help clients understand how these benefits protect their financial health.

2) Using data to personalize coverage. Tailor recommendations based on workforce demographics and claims trends.

3) Staying proactive. Regular check-ins and benefit audits keep coverage relevant and competitive. 

4) Leveraging technology. Modern platforms make it easier to quote, enroll and administer benefits efficiently. 

“By aligning supplemental health offerings with the broader movement toward wellness, agents can deliver real value—helping employers build benefit strategies that are both protective and progressive,” she says.

Olivia Overman is IA content editor. 

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