In the wake of the COVID-19 pandemic, many employees started looking to their employers to help protect their health and financial well-being. Now with inflation at high levels and an uncertain economy, it’s clear that Americans are looking to stretch every hard-earned dollar, and voluntary benefits have become increasingly popular.1
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 LIMRA,2 hospital indemnity is one of the fastest growing voluntary benefits. Supplemental health product sales increased 6 percent for the first quarter of 2022, with hospital indemnity sales jumping 12 percent year-over-year. The continued increase might be because employers want to offer more robust benefits, or help employees fund the often-significant increase in health care 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. More companies than ever are offering hospital indemnity coverage
Accelerated by the pandemic, a survey by Willis Towers Watson found 42 percent of employers currently offer hospital indemnity insurance, with over 60 percent planning to add it in the coming year.3
Data from Willis Towers Watson shows 94 percent of employers believe additional voluntary benefits will be key at their organizations over the next three years.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, according to a BenefitsPRO survey.4
The beauty of HSAs? Employees can carry over any unspent dollars each year and grow their balance.5
This becomes more important with inflation on the rise. Employees are seeking to leverage every dollar and benefit at their disposal to combat out-of-pocket medical expenses.
The latest hospital indemnity plans have many benefits and amount options. And benefits are optional, except for basic hospital stays.4
3. Hospital indemnity cash benefit covered expenses grow
Historically, the hospital indemnity cash benefit covered expenses such as medical deductibles, child care, 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.6 Hospital indemnity pays a fixed amount for specified family-building services related to in vitro fertilization (IVF), prenatal care and childbirth.7
Even telehealth services, employee assistance programs and vaccinations could be included.7 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.