All About Voluntary Benefits (Part 5) - Hospital Indemnity
Hospital stays are never fun, especially when you end up with a surprisingly large bill at the end of it. However, the unfortunate truth is that most employees are susceptible to injuries or illnesses requiring a hospital stay – even healthy ones. That’s why we’re covering hospital indemnity insurance this week as part of our voluntary benefits blog series.
What It Covers
Hospital indemnity insurance pays the insured a predetermined benefit amount for each day spent in the hospital, typically up to a year. It covers inpatient stays, intensive care unit (ICU) and critical care unit (CCU) expenses, and in some cases can cover outpatient surgery and ambulance costs. It provides a cash benefit that can be used to help pay for out-of-pocket expenses that health insurance doesn’t cover.
Why It Matters to Employees
There are countless unplanned scenarios where your employees might unfortunately end up in a hospital bed, ranging from serious car accidents to tripping over a child’s toy. And the shocking truth is that the average hospital stay is 4.5 days and costs over $10,000. This can leave employees with a hefty financial burden, especially if they have a high deductive health plan. Even robust insurance plans don’t always cover the full share, and employees are left to pay for things like copayments, transportation and meals for family members.
Why It Matters to Organizations
Many employers are focusing on consumer-driven health plans featuring higher deductibles and Health Savings Accounts. This means that more out-of-pocket costs are being shifted onto the employee, making hospital indemnity coverage an increasingly popular choice.
Providing your employees with the opportunity to take advantage of voluntary coverages such as hospital indemnity helps provide them, and their families, with peace of mind when the unexpected occurs. Through our EnrollSMART approach, we help organizations create a more personalized benefits package for their employees. To learn how your organization can benefit from a custom benefits strategy, contact a member of the ‘A’ Team!
- All About Voluntary Benefits (Part 1) – Accident Coverage
- All About Voluntary Benefits (Part 2) - Identity Theft Insurance
- All About Voluntary Benefits (Part 3) - Short-Term Disability
- All About Voluntary Benefits (Part 4) - Permanent Life & Long-Term Care
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