We can all agree, the times are changing … in the economy, the workforce and in the world of supplemental health benefits.
The current state of hospital indemnity insurance
Take hospital indemnity insurance, for instance. This benefit, which pays cash to cover expenses resulting from a hospital stay, is more popular than ever.
According to The Emerging Trends in Health Care Survey,1 hospital indemnity is one of the top five fastest growing voluntary benefits. Maybe because employers want to offer more robust benefits, or help employees fund the often-significant increase in healthcare costs, or both.
Here are three things trending in hospital indemnity insurance. And reasons why employers should integrate hospital indemnity insurance into their benefits packages:
1. Everybody’s offering it
Ok, not everybody. But more companies than ever are offering hospital indemnity coverage.
Accelerated by the pandemic, a recent survey by Willis Towers Watson found 42% of employers currently offer hospital indemnity insurance, with 65% saying they plan to provide it by 2022 – an increase of 23%.2
A 2019 BenefitsPRO/Eastbridge survey revealed just 27% of employees currently own a hospital indemnity plan.3 But of the 73% who don’t, 43% said they would like to purchase such coverage.3
2. Hospital indemnity plans can be HSA-compatible
Carriers are updating their plans to be HSA-compatible and more flexible to coordinate with employer-provided medical plans, says a recent BenefitsPRO survey.3
The beauty of HSAs? Employees can carry over any unspent dollars each year and grow their balance.4
The latest hospital indemnity plans have many benefits and amount options. And benefits are optional, except for basic hospital stays.3
3. The list goes on
Historically, the hospital indemnity cash benefit covered expenses such as medical deductibles, childcare, household expenses, travel, lodging or meals.
But that list is growing. Screening and wellness programs may be covered, helping cover hospitalization and pre-hospitalizations costs.5
Even telehealth services, employee assistant programs and vaccinations could be included.5 And benefits may not be confined to hospitals, as some plans cover stays in substance abuse, mental health and nursing facilities.5
In today’s ever-changing world, offering the right hospital indemnity plan (i.e., a plan that includes innovative trends) is one way employees are singing their employers’ praises.