What to look for in Accident, Critical Illness and Hospital Indemnity coverage
There are classes of voluntary insurance products that offer your employees financial protection when unexpected medical events happen and offer you the chance to broaden your company’s benefits portfolio with no added plan costs.
They are called Voluntary Supplemental Health plans (or also referred to as Accident, Critical Illness and Hospital Indemnity plans). These plans pay your employees a lump-sum benefit that can be used at the employee’s discretion when covered medical events happen. Employees can use the money to help pay for unexpected medical costs or for daily living expenses like mortgage payments, meals or child care.
Here’s how they work.
Accident plans provides fixed lump-sum payment following a covered accidental injury and related medical services such as emergency room admissions, surgeries or follow-up care
Critical illness plans provides lump-sum benefits when specific illnesses are diagnosed, including invasive cancer, heart attacks and strokes
Hospital indemnity plans provide fixed per-day benefits for inpatient hospitalization caused or contributed to by an accident or illness
Pro tip: While these benefits can be offered by standalone insurance carriers, they work better when coming from an insurance carrier offering both medical insurance and voluntary supplemental health insurance. Benefits can then be connected clinically between the two products – allowing the medical plan data to be securely shared offering more advantages.
- This enables the single insurance carrier to process the claims faster and easier
- Members can be notified when they have an eligible accident, critical illness or hospital indemnity claim.
- Nurse care managers can be assigned to help the member navigate the recovery process.
Want to learn more about Voluntary Supplemental Health plans? Talk to your broker, benefits consultant or insurance company representative.
*Consumer Financial Protection Bureau. Consumer Credit Reports – A Study of Medical and Non-Medical Collections (December 2014): consumerfinance.gov.
Jason Kinzy is a marketing manager at Anthem, Inc. and is responsible for the promotion of Anthem’s specialty business (dental, vision, voluntary, life and disability plans) to members, employers and brokers. He has 20 years of health care marketing communications experience.