“Grocery bill” and “hospital stay” are two instances likely to make you see dollar signs.
Americans are wisely tightening their spending in response to inflation, but some costs are unavoidable.
In the unfortunate event of an accident or illness resulting in a hospital stay, families are faced with stressful logistics like childcare, meals, missed work, recovery time, and hospital bills. Medical debt can stack up unintentionally – and quickly.
A Hospital Stay is Stressful.
A hospital stay is stressful enough. It shouldn't have to place a financial strain on families.
Yet, in recent years, hospital costs accounted for 31% of the $4.3 trillion spent nationally on health expenditures.[1]
Hospital Accident Protection (HAP) and Recuperative Care are two highly attractive coverages, supplementing standard health insurance. These coverages step in during and after a hospital stay and pay a cash benefit for qualified accidents or illnesses. Unlike health insurance, the benefit is paid directly to the policyholder. The policyholder can choose how to spend the funds to cover expenses like medication, deductibles, or rehab.
Who is a good candidate for Hospital Benefit Solutions?
Age, health, and lifestyle are all factors influencing a potential hospital stay. This supplemental coverage is most beneficial for these six groups:
- High deductible health insurance plan (HDHP) policyholders: Inflation isn’t only affecting daily costs like groceries and gas. Health care is also getting more expensive. As employer expenses rise the cost of healthcare is often passed on to the employee. Health insurance premiums have jumped 20% in the last few years, even among HDHP typically known for their lower premiums.[2] These deductibles can financially strap Americans during a major medical event like a hospital stay.
- Prone to injuries: Frequent exposure to injury-producing activities increases the likelihood for a hospital stay. This includes athletes, the elderly, and those who work in dangerous environments like manual labor and agricultural work.
- Chronically ill: Living with a diagnosed, chronic illness is both overwhelming and unpredictable. Like dangerous work situations, chronic illnesses are more likely to land someone in the hospital.
- Pregnant women: Pregnant women or those expecting to get pregnant and planning to deliver in the hospital can benefit from this coverage. Because the cost of delivery can vary based on the hospital and type of delivery it’s tricky to budget for a hospital delivery. Certain complications may be covered under Recuperative Care.
- Nonelective surgery: Surgery can bring many costs outside of medical bills, including medication and rehabilitation therapies. A required surgery due to an injury from a covered accident is an ideal situation for these coverages to step in.
- Anyone who wants to avoid major medical debt: Medical debt is a top driver of bankruptcy. It’s an unsuspecting type of debt that is often unavoidable. This coverage can bring peace of mind for policyholders who are financially unprepared for a hospital stay and the resulting expenses.
Wins for Financial Institutions
Adding Hospital Accident Protection or Recuperative Care to your lineup of products and services isn’t a win only for your accountholders, it also benefits your bottom line.
Generate Fee Income: As loan originations slow, non-interest income can help margin compressions and address liquidity concerns. Could your financial institution benefit from generating additional fee income?
No Marketing Budget Needed: This product can be added to your portfolio of products and services with no added marketing dollars needed. Allied Solutions takes on the direct-to-consumer marketing initiatives for these coverages.
This coverage is another tool in your institution’s toolbox to better your consumers’ financial wellbeing and defray the high costs of hospitalization.