Insurance plans, especially when reviewed in a time of crisis, can come up short and seem more confusing than helpful. Typical health insurance that is provided by employers may not cover hospital admissions or additional costs for illness. Hospital indemnity insurance bridges the gap and offers employers the chance to give their employees a safety net in case of emergency.
Hospital indemnity insurance is offered from employers to employees to cover emergency issues like medical co-pays, deductibles, and regular expenses like food and gas money. This is paid directly to them in a cash payment so they can use the money for any expenses incurred.
When looking for a good hospital indemnity plan for your company you want to look for plans that offer wide coverage for all of your employees and that fits your budget as a business owner.
Hospital indemnity insurance’s inner workings
Hospital indemnity insurance works by helping to lessen the out-of-pocket costs for medical emergencies.
When someone is admitted to the emergency room for any reason they will most likely have a large out-of-pocket bill despite their regular insurance. Hospital indemnity insurance helps pay those costs. While each plan is designed to fit your company and employees, most plans will lessen costs by quite a bit for hospital admissions and procedures.
Meeting the requirements of hospital indemnity insurance
Many hospital indemnity insurance plans do not have health exams or medical questions required to add to this plan. This allows people who may have more severe health issues to obtain and retain more comprehensive insurance that will lessen their expenses.
With the combination of regular health insurance and hospital indemnity insurance, most costs are covered. But there are still some out-of-pocket costs for hospitalizations and procedures. Most plans drop those out-of-pocket costs by up to 85% but depending on the procedure or hospital stay costs that your employees will pay may still be high.
These types of insurance plans are very flexible and can be built to meet your business and employee’s needs.
Most hospital indemnity insurance offers base coverage of Hospital and Intensive Care Unit admissions. But they can be made more comprehensive by offering coverage of ambulances, diagnostic tests, doctor’s office visits, health screening, and emergency room care.
In addition to specific costs associated with a hospital stay, hospital indemnity insurance offers money for each day you stay in the hospital. This money can be used for hospital expenses or other living expenses incurred while you’re recovering.
Take time to evaluate the needs of your employees and your budget as a business to determine the type of plans you can offer.
Utilizing indemnity payments
Hospital indemnity insurance differs from regular insurance by sending the money directly to you to use as you see fit to pay your bills.
Once you receive care and get a bill for your hospital stay or procedures, send in the claim, and receive a check for your expenses. When added to your traditional health insurance, hospital indemnity insurance bridges the gap by coming alongside you to pay your deductibles and even living expenses like food or rent.
Total family coverage
Ensuring that you and your family are covered in case of emergencies is crucial when choosing a health insurance plan. Hospital indemnity insurance covers the whole family and can be renewed up to age 65. So no matter what emergency may pop up, you’ve got a safety net for you and your family members.
Overall, this covers you, your spouse, and your kids. Whether your child has broken their arm or your spouse caught the flu, hospital indemnity insurance covers their hospital stay. Even if you’re having a baby, hospital indemnity may cover extra days for you to stay in the hospital.
Signing-up during the open enrollment period
During the open enrollment period for insurance registration, you can add hospital indemnity insurance on top of your traditional health insurance. You’ll need to have traditional health insurance to add hospital indemnity on top of it but during the open enrollment you can sign up for both types of insurance to get you and your family covered.
Average cost of indemnity insurance
The cost of hospital indemnity insurance varies wildly with the benefits offered. On the lower end of the spectrum are plans that are offered for around $7 per month. On the higher end are programs and plans that offer lots of benefits and are closer to $453 per month.
The average costs tend to fall closer to $20 per month per family member covered under the plan. This is paid in addition to typical health insurance payments.
Frequently Asked Questions
Is there a waiting period?
This is supplemental insurance and as long as you’re employed, your insurance coverage starts the day you enroll. Working with agents through companies like MetLife to develop a plan for your company can get you started with the coverage you want and need.
Do the payments come directly to me and my family?
Absolutely! Payments are sent straight to you once your claim has been filed. This allows you to determine where the money should be allocated. As long as you’re working and your employer offers hospital indemnity insurance through plans like Guardian if you need to file with your insurance, the payments come directly to you.
Do I need extra coverage if I’ve got good medical insurance?
Health insurance covers many things but often doesn’t cover specific hospital procedures or stays which can average $30,000 for the hospital admission. Hospital indemnity insurance through companies like United Healthcare can cover the cost of ambulances, hospital stays, and even living expenses like food.
Hope for the best, plan for the worst
With just a small monthly payment you can get extra coverage for yourself and your family in case of emergency stays at the hospital. In addition to typical health coverage, hospital indemnity insurance can give you peace of mind and a safety net for everyone you care about.