Hospital Indemnity Insurance - Transamerica Employee Benefits · Policy Design: $1,500 Hospital...
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Hospital Indemnity Insurance Why Employers Should Provide Hospital Indemnity Insurance Recovering from a serious illness or accident is difficult enough without employees having to worry about the added financial stress of being in the hospital. Hospital Indemnity insurance offers flexible benefits to complement major medical plans including an HSA compatible version. Employers can make this type of benefit available without affecting the company’s bottom line. 1 2011 National Hospital Ambulatory Care Survey, CDC/National Center for Health Statistics. 2 2013 Fast Facts on US Hospitals, Health Forum, an affiliate of the American Hospital Association. 3 2012 Health Data 2012, Organization for Economic Cooperation and Development. 4 2012 Kaiser/HRET Employer Health Benefits Survey, Kaiser Foundation. Use of statistics does not imply endorsement. CHV01A2-1013 For Producer Use Only-Not for Public Distribution. Employees Need It. This type of coverage pays a set amount—per day—if an insured is confined in a hospital. Even with the best primary insurance plan, out-of-pocket costs from a hospital stay can add up. Hospital Indemnity insurance benefits can help defray expenses that major medical insurance doesn’t cover, like deductibles, co-pays or co-insurance amounts. Benefits can also be used for non-medical expenses such as rent or mortgage, car payment, groceries, or child care. As medical costs escalate and employers continue to increase their employees’ share of these costs, hospital indemnity insurance provides an additional level of financial protection. 39 MILLION According to 2012 NAIC Market Data, total earned hospital indemnity premium has grown by over 39 million since 2011. 4 .8 DAYS 53 PERCENT 72 PERCENT 36 MILLION Total admissions in all U.S. registered hospitals were over 36 million in 2011. 1 Average length of a hospital stay in 2012. 2 Percentage of average charges for a hospitalization have risen in the past 10 years while the average length of stay declined. 3 Percentage of covered workers now facing a deductible with average deductibles doubling from 2007-2013. 4 THIS IS NOT MAJOR MEDICAL INSURANCE AND IS NOT A SUBSTITUTE FOR MAJOR MEDICAL INSURANCE. IT DOES NOT QUALIFY AS MINIMUM ESSENTIAL HEALTH COVERAGE UNDER THE FEDERAL AFFORDABLE CARE ACT.
Transcript of Hospital Indemnity Insurance - Transamerica Employee Benefits · Policy Design: $1,500 Hospital...
SPOTLIGHT Hospital Indemnity Insurance
Why Employers Should Provide Hospital Indemnity InsuranceRecovering from a serious illness or accident is difficult enough without employees having to worry about the added financial stress of being in the hospital. Hospital Indemnity insurance offers flexible benefits to complement major medical plans including an HSA compatible version. Employers can make this type of benefit available without affecting the company’s bottom line.
1 2011 National Hospital Ambulatory Care Survey, CDC/National Center for Health Statistics.2 2013 Fast Facts on US Hospitals, Health Forum, an affiliate of the American Hospital Association.
3 2012 Health Data 2012, Organization for Economic Cooperation and Development.4 2012 Kaiser/HRET Employer Health Benefits Survey, Kaiser Foundation.
Use of statistics does not imply endorsement.
CHV01A2-1013For Producer Use Only-Not for Public Distribution.
Employees Need It.This type of coverage pays a set amount—per day—if an insured is confined in a hospital. Even with the best primary insurance plan, out-of-pocket costs from a hospital stay can add up. Hospital Indemnity insurance benefits can help defray expenses that major medical insurance doesn’t cover, like deductibles, co-pays or co-insurance amounts. Benefits can also be used for non-medical expenses such as rent or mortgage, car payment, groceries, or child care. As medical costs escalate and employers continue to increase their employees’ share of these costs, hospital indemnity insurance provides an additional level of financial protection.
39
MILLION
According to 2012 NAIC Market Data,
total earned hospital indemnity
premium has grown by over 39 million
since 2011.
4.8
DAYS 53 PERCENT 72
PERCENT36
MILLION
Total admissions inall U.S. registered
hospitals were over36 million in 2011.1
Average length of a hospital stay in 2012.2
Percentage of average charges for a hospitalization have
risen in the past 10 years while the average length of
stay declined. 3
Percentage of covered workers now facing a
deductible with average deductibles doubling from
2007-2013.4
THIS IS NOT MAJOR MEDICAL INSURANCE AND IS NOT A SUBSTITUTE FOR MAJOR MEDICAL INSURANCE. IT DOES NOT QUALIFY AS MINIMUM ESSENTIAL HEALTH COVERAGE UNDER THE FEDERAL AFFORDABLE CARE ACT.
According to the Eastbridge Annual Sales Survey, Voluntary Sales Growth for 2010 was 5.2 billion, 5.5 billion in
2011 and 6.03 billion in 2012.
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LIMRA’s 2012 Market Share Report show sales have increased 5% in 2012, 8% in 2011 and 3% in 2010.
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Total Voluntary Sales
Overall, Hospital Indemnity sales account for about 19% of total voluntary sales.
The Hospital Indemnity Insurance Market
+5% HOSPITAL INDEMNITY SALES
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20112
+6.6%
Overall Voluntary Sales Growth
Additional products available through Transamerica Life Insurance Company
Universal Life • Whole Life • Basic and Supplemental Group Term Life • Dental • Vision • Legal • Cancer • Accident • Critical Illness Short-Term Disability Income • Out-of-Pocket Medical Expense Indemnity • Hospital Indemnity • Identity Theft • Telehealth
For more information
Policy Design: $1,500 Hospital Confinement Benefit, $300 Daily In-Hospital Benefit, $2,500 Critical Illness Indemnity Benefit, and $300 Intensive Care Benefit.
This is a brief summary of Hospital Select® II, Hospital Indemnity Insurance underwritten by Transamerica Life Insurance Company, Cedar Rapids, Iowa. Policy form series CPIHI400. Forms and form numbers may vary, and this coverage may not be available in all jurisdictions.
Limitations and exclusions apply. Refer to the policy, certificate and riders for complete details.
This policy pays $3,900 more than the employee cost. d
Claim Example An employee enrolls in HSA-compatible Hospital Indemnity insurance.
This employee is also enrolled in major medical insurance with 100% coverage after a $2,500 deductible is met. This claim example shows projected costs and benefits for a heart attack.
The weekly hospital indemnity premium for an employee is $9.37.
For each claim, the actual retail prices, any the actual total costs, employee payment and hospital indemnity benefits will vary. Benefits may not cover all expenses, and the out-of-pocket expenses for a claim will be higher if the insured uses
providers who do not participate in the available PPO network.
Transamerica Employee Benefits
1400 Centerview Drive (800) 400-3042
Little Rock, Ark. 72211 www.transamericaemployeebenefits.com
