There are more than 136 million emergency room visits in the U.S. each year, and in 2015, there were more than 35 million hospital admissions. Costs for such visits can range from roughly $350 or more for emergency room visits for illnesses like earaches, pink eye or sinus infections to nearly $11,000 for the average hospital stay of 4.5 days, according to data from government researchers and trade groups.
While major medical insurance helps, high-deductible health plans continue to gain popularity and may require people to pay $1,000 or more before insurance coverage kicks in. Considering 65% of Americans have less than $1,000 to pay out-of-pocket medical costs, owing $350, $11,000 or anywhere in between can be financially crippling. It's vital for clients and their employees to be prepared for expenses that may result from an unplanned hospital visit.
(Related: 3 Opportunities in the Health Gap Market)
Hospital indemnity insurance helps protect employees from the potentially overwhelming costs of a hospital visit, which can have a ripple effect on their lifestyles for months – or years – to come. Advisers can help clients and their employees have a plan in place so they don't have to put their lives on hold. Below are a few tips to keep in mind while discussing hospital indemnity insurance with your clients:
1. Highlight what makes hospital indemnity insurance helpful.
Although employees have a general knowledge of how their major medical insurance works, they may not understand the benefit of having supplemental hospital indemnity insurance. This is an opportunity to help them understand that while major medical pays for most medical services, hospital indemnity insurance is designed specifically to help with out-of-pocket costs that insurance typically doesn'tcover, like a deductible or copayment. These benefits are paid directly to the insured, unless otherwise assigned, rather than the doctor or hospital so they can spend the money where it is most needed.
