For example, a hospital indemnity policy is a supplemental policy that pays cash benefits when the insured is hospitalized for a non-occupational injury or illness.
The first type pays a flat dollar amount for each hospital confinement, typically ranging from $1,000 to $2,000. Many plan sponsors select limits that correspond with deductibles on their major medical plan. The second type pays a fixed benefit for each day of hospitalization, usually about $100 per day. Each plan type has annual maximums.
Indemnity health plans differ from major medical coverage in several ways. First, benefits go directly to the insured rather than the healthcare provider. The insured can use
benefits however he chooses. The claim process for these policies is relatively simple—the insured simply provides proof of hospitalization, and the insurer will pay benefits. Under a major medical policy, insured individuals must file a claim with their insurer, which evaluates the claim to make sure it is covered, then makes payment directly to the healthcare provider as reimbursement. (Many providers will file a claim on behalf of the insured.) Indemnity policies—like all supplemental policies—don’t replace major medical plans. They “wrap around” and complement basic health insurance.
If you are interested in providing lower-cost basic health insurance coverage to your employees, a high-deductible health plan linked to a health savings account (HSA) could offer a solution. High-deductible plans can provide coverage for catastrophic illness/accident, while workers can use funds in the linked HSA to pay for non-reimbursed medical expenses.
Either the employer, the employee or both can make tax-exempt contributions to the HSA. However, the employee owns the HSA, so balances are fully portable. Balances can accumulate year to year indefinitely and tax-free.
You can further tailor your health benefit program by offering supplemental benefits to wrap around the basic health plan. These programs, such as hospital indemnity plans, pharmacy indemnity plans and others, can help bridge the gaps in high-deductible health plans.
Accident Health Supplement is strictly based on an injury incurred from an accident-Auto Accident, Sports Injury, handyman accident, slipping, falling - anything accident related. Perfect for those emergency room visits requiring
x-rays or even an ambulance. Make sure your accident insurance supplement is intact before your child hits the sports field or court.
-Accident Fixed Benefit pays pre-declared amount/cash based on the injury to use towards your personal or medical expenses