Employees play a pivotal role in the success of a company, so it’s paramount that employers do their best to keep them safe. But what’s the best way to do that? In addition to traditional benefits offered through your workplace, one may suggest offering employees the voluntary benefit of hospital indemnity insurance. Hospital indemnity insurance provided through an employer can help employees cover costs in the event that they are injured or sick, allowing them to focus on getting back to work.
"... offering your employees good benefits often leads to an increase in employee satisfaction – which may improve employee retention rates."
What is Hospital Indemnity Insurance?
No one likes to think of the possibility of being admitted to the hospital for critical care, but in the event you find yourself there, you want to be covered. Hospital indemnity insurance can help you do that.
With the climbing costs of hospital care and inpatient treatments, an ER stay requiring critical care could cost upwards of $20,000.1
Hospital indemnity insurance is designed to help minimize some of these costs by helping the insured pay for inpatient hospital visits and ICU stays. Hospital indemnity insurance offers benefits in addition to existing health insurance can cover costs like confinement to the ICU, CCU, or general hospital – with some plans covering admission to outpatient surgery, ambulance rides, outpatient diagnostic procedures, and more.
How Does Hospital Indemnity Insurance Work?
Hospital indemnity insurance, like most supplemental health insurance policies, can pay out a cash benefit to the insured in the event that they meet the criteria for the benefit. That is to say, hospital indemnity insurance can pay a one-time cash benefit to the insured should they need to use their coverage. The insured can then use this cash benefit however they see best fit, whether that’s covering an ICU bill, paying for their prescription, or something more. However, some hospital indemnity insurance providers may pay out as expenses are incurred.
For those considering purchasing hospital indemnity insurance, prices can vary based on plan choice, age, gender, and other contributing factors. In addition to a wide range of possible costs for coverage, hospital indemnity insurance may also include limitations, waiting periods, and exclusions that vary by state.
Benefits of Hospital Indemnity Insurance
With 78% of employees living paycheck to paycheck, the last thing any employee wants to worry about is an unforeseen hospital or medical bill.2
With employers having the power to offer employees robust benefit options, one may be wondering what exactly are the benefits to doing so – not just for the employee, but for the employer as well.
One of the many benefits of offering employees hospital indemnity insurance comes from the fact that offering your employees good benefits often leads to an increase in employee satisfaction – which may improve employee retention rates.3
An increase in employee satisfaction often correlates with a spike in productivity, meaning that employees are not only happier – but are doing better at their job as well. In addition, with employees having access to benefits such as hospital indemnity insurance, they may no longer feel the added stress of worrying about their finances should a medical emergency strike – allowing them to relax and focus on what matters most.
In summary, hospital indemnity insurance offers benefits in addition to existing health insurance, and can be a viable option for those looking for additional coverage. With an array of hospital indemnity insurance options available, employers interested in improving their benefit options have a wide selection to choose from. Consequently, employers who choose to add a hospital indemnity insurance plan to their benefits options may experience a number of positive trends as a result. For more information on hospital indemnity insurance, please contact your local insurance agent to find out more.
- The Balance, Average Cost of an ER Visit, 2020
- Forbes, 78% Of Workers Live Paycheck To Paycheck, 2019
- SHRM, Better Pay and Benefits Loom Large in Employee Satisfaction, 2020