Starting in 2026, the university is expanding its voluntary benefits with three new insurance options. Employees can choose coverage for accidents, critical illness or hospital stays — financial help with the unexpected costs when they need it most. These plans are optional and fully employee-paid, separate from the medical insurance in the ISU Plan.

Employees may participate in one or all three and, like the voluntary Avesis eyewear plan, can enroll during the annual open enrollment, Nov. 3-21 this year. 

Premiums for these new insurance options vary with an employee’s age, who in the family is covered and, in the case of the critical illness and hospital insurances, the payment size selected. 

Benefits director Ed Holland said the process of adding voluntary benefits to the ISU package reflects employee inquiries, the most recent benefits survey (2022) and what similar employers offer in their benefits packages.

“The question is, how can we provide options to protect employee paychecks and help support them through our benefits program?” he said. “These voluntary plans provide payments to employees when things happen. There are losses that health plans can’t cover; these plans are intended to help bridge the financial gap.”

How they differ, how they’re similar

All three types of insurance are designed to give employees extra financial help when something unexpected happens with their health. Accident insurance provides a payment according to the injury, for example, a concussion, burn, broken bone or damaged ligament, whether it happens at home or at work. 

Critical illness insurance pays a lump-sum benefit the insured chooses — either $10,000 or $20,000 — to help with recovery during health crises such as cancer, diabetes, stroke, heart attack or other covered illness. It’s intended to help with big out-of-pocket expenses that can come with these major health events. There is no total maximum benefit or limit to the number of payments you may receive for each covered condition under your plan, except for skin cancer.

Hospital indemnity insurance provides payments when an insured person is admitted to the hospital and for each day of the stay, whether it’s for childbirth, surgery, illness or injury. It could be used with accident or critical illness insurance. 

In all three voluntary benefit plans:

• Individual, +spouse and family coverage is available.
• No qualifying health screening or physical exam is required to enroll.
• Premiums are paid through payroll deductions (after taxes).
• If employees leave the university, they may take these benefits with them.
• Payments go to the insured, not the health care provider, and may be used for medical or nonmedical expenses.
• Enrollment includes a wellness benefit: $50/person for completing a covered health screening, for example a physical exam, mammogram or annual routine blood screenings.

Plan details will go live in late September on the voluntary benefits website.

Employees who enroll in any of the voluntary benefit plans through ISU are part of a larger group plan. Typically in group plans, participants pay less for coverage than if they purchased the same insurance on their own because of fewer medical questions, simpler enrollment and special pricing. 

Example: Cost and coverage (employee age 40-44 years)

Also in 2026: Dependent care accounts can be bigger

As part of the federal One Big Beautiful Bill Act, the contribution limit for dependent care flexible spending accounts (FSAs) will go up in 2026 — the first increase since 1986. Employees may set aside up to $7,500 pre-tax dollars to use on expenses like daycare, after-school care or elder care. For 40 years, the limit to these accounts has been $5,000. The new limit for married individuals filing their taxes separately is $3,750, up from the current $2,500.

The IRS hasn’t yet announced 2026 contribution limits on health care FSAs, but they are anticipated to rise $100, to $3,400, in 2026.