What are Ancillary Benefits?

Today, employees are paying closer attention to the health benefits offered by potential employers, and they’re looking for more than just medical coverage. Ancillary benefits, such as vision and dental care, have become top priorities for job seekers, especially as the cost of routine care continues to increase.

While ancillary benefits are often viewed as “extras,” they can have a big impact on employee satisfaction, retention, and overall well-being. For employers, they can represent a cost-effective way to enhance your benefits offering and stay competitive in a challenging hiring market.

In this article, we’ll break down what ancillary benefits are, why they matter, and how focusing on high-impact options like dental and vision can help you build a better benefits package for your team.

What are Ancillary Benefits?

Ancillary benefits are supplemental health benefits that cover miscellaneous additional medical expenses not covered by a major medical plan. Ancillary benefits help fill gaps in traditional insurance plans by covering services that employees still use regularly, like eye exams, dental cleanings, and even income protection in the case of disability. Unlike major medical coverage, ancillary benefits are often optional or customizable. This gives employers flexibility in what they offer and how they offer it. And for employees, these benefit options provide access to care that supports everyday health, often at a lower cost than paying out of pocket.

Examples of Ancillary Benefits

Ancillary benefits can be offered in addition to primary health insurance plans. Employers can include various types of coverage, depending on the needs of their workforce. Below are some of the more common ancillary benefit types:

Dental Insurance

Covers preventive services like routine cleanings, exams, and x-rays, as well as basic procedures such as fillings and extractions. Many plans also offer partial coverage for more advanced care, such as root canals, oral surgery, and orthodontics (including braces or aligners).

Vision Insurance

Typically includes annual eye exams, prescription lenses, frames, and contact lenses. Some plans also cover screenings and discounts for conditions like glaucoma, macular degeneration, or astigmatism, which can impact long-term eye health.

Short- and Long-Term Disability Insurance

Provides income protection if an employee becomes temporarily or permanently unable to work due to illness, injury, or other qualifying conditions. Short-term disability usually covers a few weeks to months, while long-term disability can extend coverage for years or until retirement, depending on the plan.

Life Insurance

Pays a lump sum to an employee’s chosen beneficiaries in the event of their death. This benefit helps provide financial stability for a surviving spouse, children, or dependents and is often seen as a foundational part of a comprehensive benefits package.

Health Savings Accounts (HSAs)

Tax-advantaged savings accounts that employees can use to pay for qualified medical expenses. HSAs are typically paired with high-deductible health plans (HDHPs) and allow funds to roll over year to year. Employees and employers can both contribute, and funds can be invested for long-term savings.

Flexible Spending Accounts (FSAs)

FSAs allow employees to set aside pre-tax income to cover out-of-pocket medical expenses like copays, prescriptions, and some over-the-counter items. Unlike HSAs, FSAs are usually “use it or lose it” accounts, meaning unused funds do not roll over into the next year.

Additional Offerings (Less Common but Growing in Popularity)

Some businesses offer more specialized ancillary benefits based on the needs of their team. These may include:

• Wellness Programs: Incentives for healthy behavior, such as step challenges, gym memberships, smoking cessation support, or nutrition coaching
• Behavioral Health Services: Access to therapy, counseling, or stress management tools (e.g., an Employee Assistance Program or virtual mental health support)
• Fertility Support: Coverage for fertility treatments, egg freezing, or IVF, often with care navigation services
• Family-Building Benefits: Assistance with adoption fees, surrogacy support, or paid leave policies for growing families
• Elder Care: Services like caregiver support, referrals for elder care facilities, or paid time off to care for aging parents
• Pet Insurance: Helps cover unexpected vet bills, surgeries, or chronic condition management for employees' furry family members

Why Ancillary Benefits Are Good for Business

In the U.S., employees rely heavily on employer-sponsored health insurance, not just for primary care, but also for access to essential services such as dental and vision care. Without employer support, many Americans wouldn’t be able to afford the everyday healthcare they need to stay healthy, productive, and financially secure. Your employees are the driving force behind your business. They’re the ones solving problems, serving customers, and helping your company grow day after day. To stay competitive in today’s job market, offering meaningful, well-rounded benefits is no longer optional—it’s expected.

Ancillary benefits aren’t just good for your team, they’re good for your bottom line. Here's how offering benefits like dental and vision care can help your business thrive:

Attract Top Talent

Today’s job seekers evaluate benefits packages just as closely as salary and job duties. Offering ancillary benefits, especially highly-used options like vision and dental, can help your business stand out from competitors. When you’re able to attract stronger candidates, you build higher-performing teams and reduce the time and cost associated with hiring.

Decrease Employee Turnover

Replacing an employee can cost up to 1.5–2x their annual salary when you factor in recruiting, training, and lost productivity. Providing a robust benefits package helps employees feel supported and invested in their role. When people feel cared for, they’re more likely to stay, and that saves your company money while preserving institutional knowledge and momentum.

Boost Day-to-Day Productivity

Healthy employees are more engaged, focused, and effective. Ancillary benefits, such as dental and vision coverage, help your team stay ahead of potential health issues and avoid distractions caused by untreated conditions. When employees feel well, they work well, resulting in better outcomes, higher output, and improved customer experiences.

Minimize Absenteeism

Preventive care is key to reducing unplanned sick days. Vision exams can detect underlying health conditions, and regular dental care can prevent painful infections that lead to missed work. Offering these benefits helps your team stay healthy, present, and on task, reducing disruptions and keeping your business running smoothly.

Strengthen Company Culture and Brand Reputation

When you prioritize employee wellness, it shows. Ancillary benefits signal that your company values its people, not just as workers, but as humans. This boosts morale, builds trust, and cultivates a workplace culture where people want to do their best work. And when your employees are happy, your clients, customers, and community take notice.