Hospitalization is a lot more common than people may realize. When it happens, it can be costly. Along with rising healthcare costs and deductibles, a hospital stay can mean lost wages and other unexpected bills.
Group hospital indemnity insurance empowers employees to plan ahead financially with flexible, affordable options for offsetting out-of-pocket expenses resulting from an unexpected hospital visit. And it adds value to overall benefits packages while being prudent about the bottom line.
Hospital indemnity insurance provides a predetermined benefit amount while the insured is in the hospital. Benefits can be used in any way to help pay out-of-pocket and non-covered expenses, as well as help with additional cost of living expenses.
Why offer group hospital indemnity insurance?
- The average hospital cost per day in the U.S. is $5,2201
- Average length of a hospital stay in the U.S. is 5.5 days2
- Fifty-eight percent of consumers are concerned or very concerned about their ability to pay medical expenses. Six percent say it's their largest financial concern.3
- Payout doesn’t depend on income or other insurance
- Cash benefit is paid directly to employees – to use any way they wish
- Amounts of coverage available without a medical exam
- Spouse and dependent coverages are available
- Easy enrollment at work
- Available at group rates
How group hospital indemnity insurance works
If an employee experiences a hospital stay covered by the policy, they can receive a payout to use any way they wish – to help cover deductibles, out-of-pocket medical costs or everyday living expenses.
The payments are not dependent upon hospital charges and are paid in addition to any other benefits the employee may receive. Out-of-hospital benefits also are available.
Here’s an example of how benefits might be paid.
John slips off a stair and breaks his lower leg
Although John doesn't require surgery, he spends two days in the hospital
John could receive a cash payout to help cover medical costs or other expenses
|Benefit||Medical Expense||Low Plan||High Plan|
|Hospital Stay, Initial Benefit (non-ICU)
|Hospital Stay, Daily Benefit (non-ICU) (2 days)
Actual experience and benefit payouts may vary.
What does group hospital indemnity insurance cover?
Standard and non-standard benefits paid depend on the number of benefits for which the insured qualifies, the care they receive and the terms and conditions of the policy.
These benefits are included in all policies.
- Hospital4 stay (sickness and accident)
- Initial benefit, non ICU
- Initial benefit, ICU
- Daily benefit, non ICU
- Daily benefit, ICU
- Adult Companion Lodging
- Drug and/or alcohol treatment (inpatient)
- Emergency room treatment (sickness and accident)
- Home health care
- Mental health treatment (inpatient)
- Rehabilitative therapy (inpatient)
- Skilled nursing facility (inpatient)
- Outpatient diagnostic exams
- Tier 1 (lab test)
- Tier 2 (x-ray, ultrasound, EEG)
- Tier 3 (CT scan, MRI, PET)
- Outpatient surgery
- Tier 1 (performed in a physician’s office)
- Tier 2 (not performed in a physician’s office)
- Outpatient surgical anesthesia
1 International Federation of Health Plans, Comparative Price Report, 2015.
2 American Hospital Association Annual Survey, 2016.
3 LIMRA, Insurance Barometer Study, 2016.
4 A hospital does not include a rehabilitation center, nursing home, rest home, extended-care facility, convalescent home, a treatment c enter for drug and/or alcohol addiction(s) or a treatment center for mental health disorders, even if such facilities are affiliated with or adjoined to a hospital.
This policy provides limited benefits and has exclusions, limitations, reductions of benefits and terms under which the policy may be continued in force or discontinued. For further details, including product availability, contact your benefits department or Securian Financial Group.
Group hospital indemnity insurance is underwritten by Securian Life Insurance Company, a New York authorized insurer. The company is an affiliate of Securian Financial Group, Inc. and is headquartered in Saint Paul, MN. Product availability and features may vary by state.