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Hospital Cash protection can relieve financial pressure while hospitalised
While the spread of the pandemic has slowed down, the emergence of highly infectious variants means the public can still not drop their guard. And the arrival of flu season as we enter winter further heightens the risk of hospitalisation, which brings both emotional and financial stress.
While the majority of the working population likely have medical insurance from their employers, the typical group medical insurance plan does not cover the full hospital bill. Those who need to be hospitalised for extended observations might even have to face loss of income and livelihood. What can be done to relieve financial pressure from hospitalisation for worry-free recuperation?
Among the many types of medical insurance plans, hospital cash protection is one whereby the insurance company would provide daily cash benefits to the insured for the duration of hospitalisation. For someone who unfortunately had to be hospitalised for treatment, this can provide urgently needed protection for loss of income.
If someone is insured for HK$1,500 daily cash benefit, the total payment for a seven-day hospital stay would be HK$10,500. Many hospital cash plans offer double or even triple benefit for specific situations. For instance, if an insured person is staying in an intensive care unit, having a major organ transplant, being treated for infectious diseases (including COVID 19) or undergoing treatment for major burns during hospitalisation, the daily cash benefit could be doubled for up to 100 days. This enables the insured to stay focused on recuperation while hospitalised, without having to worry about trivial matters.
Even hospital stays for minor surgeries can be quite costly when fees for the operation, room accommodation and meals are tallied. What is the key difference between medical insurance and hospital cash plans? Medical insurance typically provides reimbursements based on actual medical expenses, but does not compensate for any loss of income. Hospital cash plans, on the other hand, addresses cash flow issues due to loss of income that might arise from hospitalisation.
To strengthen the competitiveness of their hospital cash plans, many insurance companies have enhanced the scope and period of coverage. For instance, some plans offer worldwide medical evacuation, coverage for hospitalisation in the mainland and up to 750 days of daily cash benefit. In some cases, a physician might recommend hospitalisation for observation, despite not suffering from a serious illness. Many people would refuse for fear of income loss, even at the risk of potential health issues in the future. Hospital cash plans precisely offers a line of financial protection, allowing the insured to receive timely treatment.
One should be reminded that while hospital cash plans provide cash benefits based on the duration of hospitalisation, medical insurance covers medical expenses. Not only are the two not in conflict, they complement each other. An insured person who has claimed benefits from a hospital cash plan can still claim reimbursement for medical expenses under a medical insurance plan, thereby receiving double protection.
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