Approximately 12.4% of emergency room visits result in hospital admission, according to the most recent data from the U.S.Centers for Disease Control and Prevention. It’s no secret that a hospital stay can be extremely expensive, even with high-quality major medical insurance. A hospital indemnity insurance plan can help offset the costs incurred from a hospital stay. This article answers 7 important hospital indemnity coverage questions to help you better understand how a hospital indemnity plan works and can help you.
1. What is hospital indemnity insurance?
Hospital indemnity insurance is a supplemental insurance plan that can be added to existing health insurance coverage to help cover the costs of a hospital stay. This type of plan pays you a predetermined benefit amount per day for each hospital admission, typically up to a year.
2. What does hospital indemnity insurance cover?
Most hospital indemnity insurance plans cover inpatient hospital bills, intensive care unit (ICU) and critical care unit (CCU) admissions and stays. Some plans also cover outpatient surgery, ambulance transportation and continuous care expenses.
Hospital indemnity insurance benefits are paid directly to policyholders. The predetermined benefit amount can be used to pay for almost whatever purpose the beneficiary chooses. For example, it can be used to cover health insurance deductibles, copays, household bills and out-of-pocket costs.
4. Are there dependent benefits for hospital indemnity insurance?
In most cases, yes, it is possible to add dependents to a hospital indemnity insurance plan. Adding a dependent or spouse to a plan, if it is allowed, will result in increased cost of the plan.
5. Are all hospital indemnity insurance policies the same?
No. You have the ability to customize your plan so that it pays benefits out on maternity visits or ambulance rides, or so that it pays out increased benefits on intense ailments, like strokes or cancer. Adding these features, though, may result in higher premiums.
6. Is there a waiting period before coverage begins?
Though every policy is different, there is generally a 30-day waiting period before benefits from this type of insurance can be used toward an illness that results in a hospital stay. Talk to your plan agent about the specifics of your plan.
7. How much does hospital indemnity insurance cost?
The monthly cost of hospital indemnity coverage varies depending on plan choice, age, gender and tobacco use. Premiums typically increase as policy holders age and add dependents to the plan.
A hospital stay can be costly, even with quality major medical insurance. Hospital indemnity insurance can help offset these expenses. By providing a predetermined benefit amount per day for each hospital admission, this type of supplemental plan can cover inpatient hospital bills, ICU and CCU admissions and stays, and even outpatient surgery and ambulance transportation. Beneficiaries can use the benefits to cover almost any expense related to their hospital stay, including deductibles, copays, household bills, and out-of-pocket costs. A hospital indemnity plan are valuable investment for those who want to ensure they are prepared for unexpected hospitalization expenses.
If you have questions about hospital indemnity plans and or any other benefit questions, contact us to speak to a consultant. You can also follow us on Twitter or LinkedIn or here on the FBS Blog for more employee health and wellness trends.