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More than 36 million people in the United States are admitted to a hospital each year, many of whom may not be prepared for the cost. Even with proper health insurance, out-of-pocket expenses can lead to financial hardship – the average cost for a three-day hospital stay is $ 30,000. And unfortunately, bankruptcy due to medical bills is quite common.
Since even the best health insurance plans have limits, an additional insurance called hospital insurance exists to help offset hospital expenses and cover other costs like groceries, childcare, and more while you are in your hospital. convalescence. Here is what you need to know.
What is hospitalization insurance?
Hospitalization insurance is an insurance plan that you can purchase in addition to your health insurance plan sponsored by your employer, the government or a private insurer. You pay a monthly premium, just like you do with other insurances, and if you end up spending time in the hospital, you directly receive a fixed benefit to help cover the expenses. Depending on the plan you purchase, you may be able to use the benefits for your deductible, coinsurance, transportation, medication, rehabilitation or home care costs, as well as certain expenses incurred as you recover.
What does hospitalization insurance cover?
Hospitalization insurance pays you compensation depending on the circumstances of the hospitalization. Typical health insurance has specifications on what services are covered, while hospital insurance can be distributed however you need so that you can prioritize your health.
This type of plan has no deductibles, coinsurance or network restrictions. Typically, one circumstance that would result in payment would be confinement in a hospital, intensive care unit (ICU), or intensive care unit (CCU). Depending on the plan you purchase, outpatient procedures, emergency room, ambulance transportation, and more could be covered.
It’s also family friendly, which means the plans can cover you, your spouse, and your kids.
Who should take out hospital insurance?
Hospitalization insurance does not replace your medical insurance. But how do you know if you should take out this additional coverage? Here are some reasons to consider hospitalization insurance:
- You have a chronic illness, such as heart disease or diabetes, which could lead to hospitalization.
- You have an upcoming procedure or surgery where a hospital visit or stay may be necessary.
- You are pregnant or planning to become pregnant, and coverage may be provided for the extra days you stay in the hospital after giving birth.
- You want extra coverage in the event of an accident.
- You have a high deductible health insurance plan.
- You want peace of mind for the worst case scenarios.
How much does hospital insurance cost?
Like most insurance plans, costs can vary depending on several factors and the type of plan you choose. Shop around to get a clear idea of what you’re looking for in order to get the best coverage for your health and budget.
On average, hospital insurance premiums range from $ 50 to $ 400 per month. For the premium you pay, you receive a maximum daily payout based on the plan you choose. To get the most accurate quote for you and your needs, enter your information into the calculators provided on insurance company websites. Typically, most hospital insurance plans allow you to receive $ 100 to $ 600 per day, according to Necole Gibbs, a licensed broker with the TNG Insurance Agency in Georgia.
“For hospital insurance, the premium is based on several factors, including age, gender, location and deductible amounts (if applicable),” says John Ramsey, Eternal agent Insurance Agency in Florida. “It’s also important to note that the cost varies depending on the insurance company. “
What to consider when purchasing hospital insurance
If you’re looking to purchase hospital insurance, here’s what to consider before choosing a plan for you or your family.
As you compare hospital insurance plans, find out the payment timeframe for each. In other words, how long after your hospital stay do you receive your allowance? For example, a plan with MetLife ensures that claims are processed within 10 business days per hospital stay.
Duration of coverage
Another factor to consider is the length of coverage. “Liability insurance normally has no time limit, but it can have a waiting period, which is the time you have to wait before carrying out any procedure for the company to ‘Insurance pays the claims or reimburses you,’ says Ramsey. “The period can vary from company to company, so it’s important that you understand how long your policy will be in place and if there are any requirements,” he adds.
“Some companies may require a waiting period before providing compensation benefits for certain procedures or treatments while others do not have such restrictions,” says Ramsey. “For example, if you start a plan on January 1, 2021 and that plan has a 90-day wait period for mammograms, your appointment date or the service date you get the mammogram should be on April 1, 2021 or after for the compensation plan to pay it off.
Individual or family coverage
Like your medical plan, hospital insurance is family friendly, meaning it can cover you, your spouse and your children. Think about which coverage would best suit your family’s needs if you also purchased a plan with them in mind.
Hospital insurance can be purchased by people between the ages of 18 and 65, and monthly premiums start out low and increase with age. Once you turn 65, your plan is no longer renewable as other plans like Medicare go into effect. These age restrictions depend on the insurance provider you choose and may vary.
How to apply for hospitalization insurance
Applying for hospitalization insurance doesn’t have to be difficult. You can consult with a licensed agent in any state or buy online for a plan that fits your needs. Unlike health insurance, there is no available market. You can start your research by asking your current health insurance provider if they offer hospital insurance. Otherwise, you can often find insurance companies or brokerage houses that offer auto, life, or other insurance plans that also offer these types of benefits.
Once you’ve selected a plan, using your benefits is as easy as submitting a form after you’ve received qualified medical attention and received a check to pay for your expenses.