Press release from Business Wire
Unum's new group hospital indemnity helps ease the financial pain of hospital costs
Tuesday, May 28, 2013
Unum's new group hospital indemnity helps ease the financial pain of hospital costs13:00 EDT Tuesday, May 28, 2013
CHATTANOOGA, Tenn. (Business Wire) -- The rising costs of health care mean one trip to the hospital could cause a serious financial setback due to out-of-pocket costs not covered by a typical medical plan, such as co-pays, co-insurance and deductibles.
To help protect employees from the financial costs of unexpected health events that result in hospitalization or other treatment, Unum (NYSE: UNM) has launched a new group hospital indemnity product.
Unum's group hospital indemnity product is designed to provide a lump sum benefit when an individual is admitted to the hospital. The coverage offers a rich choice of employer-selected options, including a daily benefit for hospital stays or intensive care confinement.
According to a Health Care Cost Institute report published last year, called Health Care Cost and Utilization Report: 2011, the average price for inpatient hospital admissions rose 5.3% in 2011, outpacing the rate of inflation at 3.2%.
“Employers are struggling to manage the increasing costs of health care and, as a result, are redesigning their medical plans to include more employee funding and increased levels of co-payments and deductibles,” said MaryAnn Beliveau, assistant vice president of product and market development for Unum. “Group hospital indemnity coverage gives them a way to relieve some of that financial pressure by providing their employees with access to reasonably priced coverage that can supplement their medical plans and help them financially when they face a hospitalization.”
According to Marilyn Finley, Unum's director of product and market development, group hospital indemnity coverage is a great option for families or individuals at all stages of life, whether they would struggle to cover hospital costs due to a lack of savings or because they are facing a catastrophic health event.
“In the event of a major illness or injury which results in hospitalization, group hospital indemnity offers significant financial protection,” she said. “It pays out a lump sum regardless of the cost of care, which can be used to cover co-payments, deductibles and everyday expenses.”
Other employee advantages include:
- Hospital admission benefit included in all plan designs, from $500 to $5,000
- Family-friendly design may include the option for covered employees to add family members
- A wellness benefit is available to encourage better overall health management
- No physical exam is required for eligibility.
In addition to the financial protection group hospital indemnity insurance gives employees, the product also has many employer advantages, including:
- Flexible employer-elected plan designs complement the medical plan employers offer their employees, including an HSA-compatible design
- Plan designs can include outpatient and inpatient surgical benefits and a diagnostic procedure benefit to tailor a plan that fits workplace needs and provides financial protection
- Coverage is 100 percent employee-paid
- Superior education and enrollment support.
“A stay in the hospital can be the source of great stress and worry for both patient and family,” said Finley. “Group hospital indemnity coverage gives employees an easy and affordable way to protect both their family and their finances.”
Group hospital indemnity is currently available in 35 states. Unum expects the product to be released this July in Alaska, New Mexico, Florida and Ohio. The product will be implemented in the remaining outstanding states – Colorado, Connecticut, Maryland, Minnesota, North Dakota, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Washington – in the future, upon state approval.
Unum is a leading provider of financial protection benefits through the workplace. The disability insurance leader in the U.S. for 36 years, Unum's portfolio of financial protection products also includes life, accident and critical illness, which help protect millions of working people and their families in the event of an illness or injury. In 2012, Unum paid $5.5 billion in benefits to nearly 490,000 individuals and their families.
For more information visit us at www.unum.com or connect with us at www.facebook.com/unumbenefits, www.twitter.com/unumnews and www.linkedin.com/company/unum
Brian Baker, 423-294-7839