Among the supplemental benefits offered to you by your employer, you may have noticed hospital indemnity insurance. But you might not be sure exactly what this refers to—or, more pertinently, if you need it. After all, you already have health insurance. Why should you need hospital indemnity insurance? Today, we’re going to address these questions.
Do you need hospital indemnity insurance?
What is hospital indemnity insurance?
‘Hospital indemnity insurance’ may seem like a convoluted term. But, to tell you the truth, it’s really quite simple. At its most basic level, this form of insurance pays benefits to you in the event that you are hospitalized. You might think that health insurance does the same thing. But health insurance will only cover medical services after you meet copays and deductibles. Hospital indemnity insurance can help you pay for these out-of-pocket costs upon hospitalization.
After all, hospital visits can be enormously expensive. It has been estimated that the average cost of a hospital stay in the United States is over $10,000. Many hospital bills dwarf this figure.
What does it cover?
These insurance plans run the gamut in terms of what they cover. That said, nearly all of them will pay for the costs associated with admission and confinement in a hospital as well as its ICU (Intensive Care Unit) and CCU (Critical Care Unit). Other miscellaneous fees which hospital indemnity insurance may provide a benefit for include:
- X-rays
- Ambulances
- Outpatient diagnostic imaging (such as MRI and CT)
- Emergency rooms
Do I need it?
Like with any other benefit, deciding whether or not you need hospital indemnity insurance is ultimately up to you. If the current Covid-19 global crisis has taught us anything, it’s that disaster can strike at any moment. You may feel as though you will not end up in a hospital any time soon. We hope you’re right, but keep in mind that someone in the peak of their health and the prime of their life one day could end up in a hospital the next.
That said, you should take into account your overall health before deciding whether or not to enroll in this benefit. Many conditions, such as severe allergies, diabetes, or a predisposition to heart attack or stroke, increase the likelihood that you will end up paying a visit to a hospital.
You should also consider whether or not you have savings. And if you do have them, determine whether or not they could cover an extended (or even brief) hospital visit. Statistically, most Americans—as much as 78%—live paycheck to paycheck. If that’s the case, a hospital visit can devastate your finances. Finally, review the health insurance policy you have already. Try to isolate any gaps in coverage that might exist if you do find yourself in a hospital.
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Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.