Put yourself in this situation: you’re watching your child dribble down the court at her school’s playoff basketball game and she’s accidentally pushed and breaks her arm. You take her to the hospital where she needs to stay overnight for surgery. From a cost perspective, it’s no big deal, right? Your medical insurance will cover it.
That’s not always the case.
Hospital stays can be expensive. The average out-of-pocket spending per hospital stay has grown by nearly 40%, according to new research from the University of Michigan. For most families, paying over a grand for one night in the hospital is unthinkable.
So how can you protect you and your family from these unforeseen costs? Hospital indemnity insurance may be your answer, and it may be a voluntary benefit option available through your employer. Here are three things you need to know this open enrollment season.
1. Hospital indemnity is different than a medical plan.
There’s a common perception that medical insurance covers “all-things-hospital-related,” but that’s often not the case. Medical insurance only covers specific services and procedures based on your insurance plan. To be covered for hospital admission, overnight stays, outpatient surgery or accident-related inpatient rehabilitation, you may want additional coverage like hospital indemnity insurance.
2. It’s family-friendly.
Hospital indemnity insurance can cover you, your spouse and your kids if a hospital visit for an accident or sickness were to occur. This could be for a broken arm, or an infection or illness that sends your child to a hospital. If you’re having a baby, hospital indemnity insurance may provide coverage for extra days in the hospital post childbirth, in addition to other insurance you have in place.
3. It pays a lump sum directly to you.
Unlike medical insurance that reimburses you or your provider, hospital indemnity insurance pays a lump-sum payment directly to you. And the best part is that you can use it for however you see fit, whether it’s to cover household bills, medical insurance deductibles or even a special treat for your child who just got home from the hospital.
Though it may seem like hospitalization is unlikely or only happens in a rare event, it’s actually a very common circumstance, especially if you have a child. To cover you and your family from these unforeseen costs, take the time to understand hospital indemnity insurance and the financial impact it can make.
This article was originally published on the MetLife blog.