Supplemental Insurance
Hospital Indemnity Insurance
Hospital indemnity insurance pays a fixed cash benefit for each day an employee is hospitalized — or a flat benefit per admission. It's designed to address the significant out-of-pocket exposure that even well-insured employees face when a hospitalization occurs: deductibles, facility fees, and the income disruption of an extended absence.
Supplemental Insurance
What You Need to Know About Hospital Indemnity Insurance
Per-Day or Per-Admission Benefit
Hospital indemnity policies pay either a flat per-admission benefit, a per-day benefit during the hospital stay, or both. Per-day benefits are particularly valuable for extended hospitalizations where out-of-pocket costs accumulate over time.
ICU and Surgery Riders
Enhanced hospital indemnity policies include additional benefits for ICU stays, surgery, and other high-cost events within the hospitalization. For employees on high-deductible plans, these riders can significantly offset the out-of-pocket exposure a serious hospitalization creates.
Income Protection During Recovery
Beyond the direct medical costs, a hospitalization often involves missed work — and potentially lost income for hourly employees. The cash benefit from hospital indemnity coverage can replace that income without requiring employees to exhaust PTO or take unpaid leave.