Health insurance is hardly a one size fits all industry. Different people need and want different coverage based on their lifestyle and what they can afford.
Based on this and additional personal factors, people choose to enroll in various coverage plans. One policy type that someone might choose to opt into is hospital indemnity coverage. Let’s discuss the details regarding hospital indemnity coverage, who needs it, how much it costs, what it covers, and more.
WHAT IS HOSPITAL INDEMNITY INSURANCE COVERAGE?
Hospital indemnity insurance is a supplemental coverage option that supports the financial aspect of your health coverage.
Hospital indemnity insurance is intended to cover the costs of hospital stays and emergency care that are not otherwise covered under a typical insurance plan. If you do have to take an unexpected trip to the hospital, you pay a fixed cost, instead.
Depending on the type of plan you have, hospital indemnity insurance benefits can go toward:
This coverage can be sponsored by your employer, a government plan, or by a private insurer.
Hospital indemnity coverage may vary slightly from one plan to another. However, hospital indemnity insurance most commonly covers the following:
Generally, hospital indemnity plans have lower premiums compared to other insurance, but depending on your coverage, can increase.
The age-old adage, “accidents happen,” is around for a reason.
Accidents can’t be predicted or prevented, hence why they’re accidents. In some cases, however, certain people may be more inclined to need consistent hospital health services.
A hospital indemnity policy is a worthwhile benefit to have for someone who frequents the hospital or if you can afford the security that hospital indemnity insurance provides.
Oftentimes patients may be surprised and overwhelmed by the bills and financial responsibility that follow a hospital stay. At SBMA, we believe it’s better to protect your finances with additional coverage.
Consider hospital indemnity insurance for individuals with the following:
Although emergency services can create a financial burden, patients can have peace of mind now with the No Surprises Act protecting from surprise medical billing. Read on to learn more about The No Surprises Act.
There isn’t a fixed cost to this insurance policy. The cost of a hospital indemnity insurance policy, however, depends on a few factors:
Forbes found that on average, hospital indemnity insurance premiums can range from about $50 to $400 a month. Additional research found that the average 3-day hospital stay costs about $30,000.
It depends on who you’re asking.
Investing in hospital indemnity insurance can be worth it—depending on your health, lifestyle, and future plans.
Ask yourself the following when deciding whether or not to add hospital indemnity insurance to your existing coverage:
Answering these questions will help you decide if hospital indemnity insurance is worth it for you.
Employers who offer hospital indemnity insurance to their employees add value beyond salary—without affecting their bottom line.
As employees consider the widening job market available to them, offering a competitive job opportunity that includes healthcare benefits and hospital indemnity can make you an ideal employer that attracts and retains the best employees. After all, 60% of employees rated benefits as very important in contributing to job satisfaction.
Other benefits of offering hospital indemnity insurance to employees include:
Want to learn more? Read our article “The Difference Between Hospital Indemnity and Accident Insurance” for more information.
Here at SBMA Benefits, we offer various comprehensive health care plan options in addition to supplemental coverage options—such as hospital indemnity coverage. For details about our plans or to enroll today, contact us directly or speak with one of our experienced brokers.
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