About Hospital Indemnity Insurance
Unexpected hospital visits lead to unexpected costs – and research shows that most people aren't prepared to handle such surprise expenses. Hospital Indemnity Insurance can help cover some out-of-pocket medical costs associated with a hospital stay. This can be especially helpful if the major medical plan's deductible has not been met. Hospital Indemnity benefits are paid directly to the covered person, regardless of other coverage, and can be used for any purpose – there are no restrictions.
How Hospital Indemnity Insurance Works
Group Hospital Indemnity Insurance pays cash benefits for covered expenses related to a hospital stay. People with this coverage submit claims after a hospital stay, and benefits are paid for approved expenses based on a pre-determined schedule of benefits. Employers may choose to include coverage for hospital stays due to pregnancy.
Features and benefits
- Coverage is Guaranteed Issue at initial enrollment subject to pre-existing condition limitations if applicable.*
- Coverage available for spouse and children
- Affordable premiums with convenient payroll deduction
- Benefits are paid directly to the covered person without spending restrictions
- Coverage may be portable, meaning insured persons may be able to take their coverage with them if they leave their employer
Meet Sarah
Sarah is admitted to the hospital because she is experiencing sharp chest pain, severe cough, fever, chills and shortness of breath. After some initial tests, the doctor diagnoses her with pneumonia. Sarah spends three days receiving inpatient treatment.
Sarah's hospital stay amounts to about $30,000. She pays the $1,000 deductible for her major medical insurance and $5,800 for her 20% coinsurance, bringing her out of pocket total to $6,800. Then she files a claim through her Group Hospital Indemnity Insurance from Allstate Benefits and receives a benefit payment of $1,3002, which helps reduce her out-of-pocket cost.
Disclaimers and notes
1All exclusions and limitations apply to any coverage issued, including pre-existing condition limitation, if applicable.
2This is an example of the total benefits that might be paid. The benefits shown are for coverage that includes First Day Hospital Confinement and Daily Hospital Confinement benefits unde GVSP2 for most states. This scenario illustrates $1,100 for First Day Hospital Confinement and $100 for Daily Hospital Confinement for days 2 and 3. A day is 24 hours and indicates an overnight stay. For example, Monday-Tuesday = 1 day, Tuesday-Wednesday = 1 day. The benefits may vary from the coverage your employer is offering. Your individual experience may also vary.
