What is Hospital Indemnity Insurance?
Hospital Indemnity Insurance (HI) provides cash benefits for each day an employee is confined in a hospital for a covered illness or injury. Insureds can use these benefits to help safeguard against the expenses that medical insurance may not cover like co-pays, deductibles, or any other living expense that may arise. Designed to help employers fill in the financial gaps left by most of today’s high-deductible health plans (HDHPs), Hospital Indemnity Insurance can be a meaningful addition to any employee benefits offering.
Why Employees May Need Hospital Indemnity Insurance
Hospital Indemnity Insurance provides employees with cost-efficient financial protection against rising health care costs.
Given that 25% of employers are now only offering high-deductible health plans (HDHPs) to their employees – nearly a 40% increase over 20141 – conscientious employers are seeking ways to continue to provide employees with cost-efficient financial protection against rising health care costs.
Often, Health Savings Accounts (HSA) simply aren’t enough to cover all expenses given how quickly medical bills can add up, even for a one-day hospital stay – and the average cost for a hospital stay is $2,346 per day.2 In fact, 63% of Americans with medical insurance used all their savings for out-of-pocket medical costs.3 That’s where our Hospital Indemnity insurance can help.
What Hospital Indemnity Covers4
Our guaranteed issue5 HI Insurance from The Hartford provides a competitive range of first day confinement and daily confinement benefit amounts as part of our base plan. The Hartford offers both HSA6 and non-HSA HI plan designs.
A number of optional benefits like coverage for medical related travel expenses, or expenses incurred for family care (adults, children or pets) are also available.
First Day ICU Confinement (HSA-compatible)
Family Care Coverage (HSA-compatible) – Travel, lodging, family or pet care
Other Medical Care Facility Coverage (Non HSA-compatible) – Rehabilitation, hospice or inpatient mental/substance abuse
Additional Care Coverage (Non HSA-compatible) – Air/ground/water ambulance coverage or outpatient diagnostic exam(s)
Medical Professional Care Coverage (Non HSA-compatible) – Outpatient therapy, urgent care or home health services
How Flexible is Hospital Indemnity?
With our extensive, flexible coverage options, you can design a plan best suited for your employees by choosing from both HSA-compatible and non HSA-compatible plans.
HI can be layered with other voluntary benefits from The Hartford’s Employee Choice BenefitsSM
suite such as Critical Illness
(CI) and Accident
(AI). There are no offsets applied to HI benefits so in the event of a covered illness or injury, the covered employee’s benefit can be maximized.
Other flexible features include:
Coverage for illness and injury, or coverage for illness only
100% employee-paid, cost sharing and employer-paid funding options available
Multiple coverage configurations including
Three tier (Employee only, Employee and Dependent, Family)
Two tier (Employee only, Family)
One tier (Employee only)
Optional riders, including Accidental Death and Dismemberment (AD&D), Critical Illness (CI), Term Life (TL) and Short Term Care (STC)
What Employees Get with Hospital Indemnity Insurance
The Hartford goes beyond simply the insurance benefit and provides built-in value-added services to support an employee's recovery – at no extra cost to the company or the employee.
Ability Assist®7 – Provides confidential support for emotional, legal and financial issues
HealthChampionSM7 – Offers unlimited access to benefit specialists and nurses for administrative and clinical support to address medical care and claims concerns
How to Get Hospital Indemnity Insurance
THIS IS A HOSPITAL CONFINEMENT INDEMNITY POLICY. THE POLICY PROVIDES LIMITED BENEFITS.
This limited benefit plan (1) does not constitute major medical coverage, and (2) does not satisfy the individual mandate of the Affordable Care Act (ACA) because the coverage does not meet the requirements of minimum essential coverage.
Hospital does not include: convalescent homes, or convalescent, rest or nursing facilities; facilities affording primarily custodial, educational or rehabilitory care; or facilities primarily for care of the aged/elderly, persons with substance abuse issues/disorders or mental/nervous disorders. Confinement means the assignment to a bed in a medical facility for a period of at least 20 consecutive hours. Required hours may vary by state.
1 PricewaterhouseCoopers Health Research Institute. “Medical Cost Trend: Behind the Numbers 2016.” Accessed April 25, 2016.
2 Kaiser Family Foundation, November 2016 Adjusted expenses per inpatient day include expenses incurred for both inpatient and outpatient care; inpatient days are adjusted higher to reflect an estimate of the volume of outpatient services. http://kff.org/health-costs/state-indicator/expenses-per-inpatient-day-by-ownership/
3 Kaiser Family Foundation and the Health Research & Educational Trust, 2015.
4 May vary by state.
5 This policy is guaranteed issue, but does contain a Pre-Existing Condition Limitation. Please refer to the certificate for more information on exclusions and limitations, such as Pre-Existing Conditions.
6 This plan design was designed to be compatible with Health Savings Accounts (HSAs). However, if you have or plan to open an HSA, please consult your tax and legal advisors to determine which supplemental benefits may be purchased by employees.
7 HealthChampionSM and Ability Assist® are offered through The Hartford by ComPsych®. ComPsych is not affiliated with The Hartford and is not a provider of insurance services. The Hartford is not responsible and assumes no liability for the goods and services provided by ComPsych. ComPsych is a registered trademark and HealthChampion is a service mark of ComPsych Corporation. HealthChampionSM specialists are only available during business hours. Inquiries outside of this timeframe can either request a call-back the next day or schedule an appointment.”
The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries including issuing companies Hartford Life Insurance Company and Hartford Life and Accident Insurance Company. Home Office is Hartford, CT. All benefits are subject to the terms and conditions of the policy. Policies underwritten by the issuing companies listed above detail exclusions, limitations, reduction of benefits and terms under which the policies may be continued in force or discontinued.
Hospital Income Plan Form Series includes GBD-2800, GBD-2900, or state equivalent.
6387a NS 12/16