Have you been in the hospital lately? Or has someone you love? Did your new Obamacare insurance policy cover it? And if not, how much of it is your responsibility? If you’re like most folks, you got a nasty surprise when you opened that hospital bill. That’s because your policy has a deductible and coinsurance that you are expected to pay, and, depending on which policy you own, that deductible could be as high as $6,150, and you could be expected to contribute up to 30% toward the discounted medical costs.
Let’s look at an example. You come down with pneumonia, and due to complications, you are admitted for observation, which leads to a 3-day stay. During those 3 days, there are tests, lung x-rays, medications. Expensive, right? Fortunately, you have insurance, so those costs are greatly discounted, resulting in a total of $10,000. However, you have a deductible of, say, $6,000, which reduces what the insurance pays to $4,000. Additionally, you have a 30% copay, or $1,200, so your portion of the bill is $5,120. That’s your cost-share under your policy. What this does not take into consideration is your lost wages for the 3 days you were hospitalized. If you have paid sick days, then it’s no concern. If you are hourly, though, then that’s money you can’t get back. If you’re paid $15 per hour, your loss equates to 24 hours at $15, or $360.00, which becomes, in effect, an additional cost caused by your pneumonia.
Can you write a check for $5,480? There is a low-cost way to do this, through a Hospital Recovery Insurance policy. Basically, you buy a “benefit bank” of money that will be paid out if you receive an in-patient hospitalization. You choose a Daily Benefit amount from $100-$900, with a 30-day maximum in any calendar year. If, for example, you chose a $500 daily benefit, your “bank” would be $15,000. Upon approval of your claim, you would receive $1,500, paid directly to you, to use as needed. Now you’ve reduced your cost share to $3,980.
And the cost? In the scenario above, let’s assume you are 40 years of age. For you alone, the premium would be under $30 per month. Coverage for your spouse and kids would be under $65 per month. And each family member has his or her own “benefit bank” amount. The issue ages typically are from 18-74, and your children can be covered under your policy to age 26. The benefits are also tax-free, and do not coordinate with any other disability or cash reimbursement policies you may own.
Many of you reading this are losing your health coverage after this year, and your new policies may come with some hefty new deductibles and copays. Policies like Hospital Recovery Insurance, as well as Personal Accident and Critical Illness can go a long way toward helping you with those out-of-pocket costs. And, just knowing that they could be reimbursed should allow you a greater peace of mind.