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health insurance coverage
While HMO benefits are generally more comprehensive than those of traditional fee-for-service plans, no health plan will cover every medical expense.
Accidental loss of life and accidental loss of one or more limbs or eyesight is another common type.
Hospital indemnity insurance pays you a specified amount of cash benefits for each day that you are hospitalized, generally up to a designated number of days. These cash benefits are paid directly to you, can be used for any purpose, and may be useful in meeting out-of-pocket expenses not covered by other insurance.
How premiums are paid depends on which of two different types of plans a group selects. The two types are contributory and non-contributory. In the case of non-contributory, the employer pays the full cost of the premium, while the contributory type requires a shared cost between the employer and employee.
Up to this point we have discussed “basic” benefits that are designed to cover some hospital, medical and surgical costs that are primarily considered to be minor. When purchased individually, these benefits can be substantially less than actual costs incurred.
The schedule will spell out the details of the benefit coverage as it pertains to length of stay. Once the length of stay has been exhausted, no more benefits are available. These are sometimes called dollar amount plans and typically the number of days is from 90 up to 365.
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