What Is Hospital Indemnity Insurance?
Planned surgeries and unplanned accidents send people to the hospital all the time. Even with the best health insurance plan, deductibles and copayments can push out-of-pocket expenses into the tens of thousands of dollars. The costs can climb even higher as a result of ambulance rides, emergency room visits, or ICU care, and unfortunately, most families aren’t financially prepared to deal with these medical bills.
Hospital indemnity insurance can help take care of these medical costs for employees when they are hospitalized as it provides an extra layer of coverage on top of their group health insurance plan. Group hospital indemnity insurance is a great addition to make to any employee benefits package in order to boost employee retention rates and recruitment.
Inpatient Hospital Stays Are Just the Beginning
Depending on how the group hospital indemnity insurance plan is structured, any number of hospital-related costs can be covered. Transportation by ambulance and emergency room costs are generally billed separately from the inpatient stay. In addition, inpatient or outpatient surgeries can also be covered under the plan. Diagnostic procedures and advanced care in the intensive care unit are typically covered as well.
Reducing the Financial Burden on Employees and Their Families
Many hospital indemnity insurance policies offer a lump sum payout rather than paying on a reimbursement basis. These payouts can then be used to cover expenses that may or may not be related to the hospital stay, such as childcare costs, transportation, and lodging.
Additional Considerations With Hospital Indemnity Insurance
Spouse and child coverage is also commonly available under these plans for employees who may want to add their family members to the plan. For instance, in some cases group hospital insurance can be portable, allowing employees the option to take the policy with them should they leave the company. While not a substitute for major medical insurance, plans can be designed to fit well with health insurance, even HSA-compatible models.
To explore your options as an employer for offering group hospital indemnity insurance, request a free hospital indemnity insurance quote below, and an MSIG benefits specialist will walk you through them to find a plan right for your company.
Request a Hospital Indemnity Insurance Quote
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