With the rapid rise of copays and deductibles, it’s no secret health insurance is becoming more expensive for majority of Americans. This shift in cost has led many to find supplemental health products to help offset some of the out-of-pocket expenses many patients are finding harder to pay for. Though it’s been around for a while, hospital indemnity insurance is becoming increasingly popular in the healthcare industry, leaving many questions around the value of the policy.
WHAT IS HOSPTIAL INDEMNITY INSURANCE?
Likely separate from your primary health insurance, hospital indemnity insurance may help you pay direct expenses related to a hospital visit such as:
- an in-patient situation such as an illness or severe injury
- an out-patient surgery
- doctors’ visits
- wellness and preventative services
- prescription drugs
- other services
WHAT DOES HOSPITAL INDEMNITY INSURANCE COVER?
While every insurance carrier may provide different plans, most policies feature something along the lines of:
- Hospital confinement lump sum – payable on the first day you are confined for 23 hours or more for a covered accident or illness
- Hospital outpatient – pays for hospital, observation unit, or surgical facility for stays less than 23 hours
- Waiver of premium – you may be eligible to waive your premium if you’re in the hospital for a certain amount of days
- Physician care – doctor visits for covered accidents and illnesses
- Preventative care
- Labs, X-rays, imaging, diagnostics – when applicable to covered illness or accident
- Ambulance – both travel and air
WHAT ARE THE BENEFITS OF HOSPITAL INDEMNITY INSURANCE?
While every insurance carrier may provide different plans, most policies feature something along the lines of:
- Flexibility – you can usually use the money however you see fit.
- Portability – if you change jobs, move to a different state, change insurance, etc., your policy will usually stay with you (depending on the carrier).
- Premiums – unless the state has approved a rate increase for all hospital indemnity policies, your premium will most likely stay the same.
- Guaranteed renewable – as long as you pay your premiums on time, your carrier won’t cancel your policy.
- Financial protection – helps mitigate out-of-pocket expenses.
Like any insurance, there is no one-size-fits-all option, even with supplemental insurance such as hospital indemnity. Consider going through all of your options and finding weak spots in your near financial future. We recommend using the assistance of a licensed insurance agent to help you navigate the complexities of the insurance industry.
Categories: Insurance, Hospital Indemnity, Supplement Health Insurance