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UNUMPROVIDENT’S NEW SUPPLEMENTAL INSURANCE
HELPS COMBAT RISING HEALTHCARE COSTS
MedSupport's benefits can help employees pay for medical co-insurance, co-pays
and deductibles, as well as other ancillary medical expenses.
CHATTANOOGA, Tenn. (Aug. 23, 2005) – UnumProvident today
announced the release of MedSupport, a new voluntary insurance product designed
to help employers and employees address the financial impact of rising medical
costs.
MedSupport, the latest in the company's range of supplemental insurance
products, helps pay out-of-pocket expenses associated with hospital stays,
outpatient surgeries, certain diagnostic tests and emergency care. Coverage is
designed to complement an individual's employer-sponsored healthcare benefits
by paying a lump-sum benefit directly to the covered individual. The benefit
can be used at the individual's discretion to meet personal financial needs.
The need for supplemental medical insurance is becoming essential as healthcare
costs continue to increase. Families often struggle to pay for the additional
expenses that traditional health plans do not cover. The U.S. Department of
Commerce, in a release titled "Personal Income and Outlays," reports that most
American workers do not have enough savings to pay the costs associated with a
sudden health event: the average personal savings rate at the beginning of 2005
was just 1 percent. And a Harvard study published in the February 2005 edition
of the Health Affairs journal found that more than half of individuals surveyed
who filed for bankruptcy did so due to medical expenses, even though most of
them had medical insurance at the onset of their health problem.
"The increase in medical insurance costs is the leading concern among HR benefit
managers," said Mike Simonds, UnumProvident's vice president of Market
Development. "Many employers have been forced to introduce significant cost
containment measures, and are often reducing benefits or shifting more costs to
employees. We designed our MedSupport solution to address the increased
financial risk that today’s employees face. It can help pay out-of-pocket
expenses including co-insurance, co-pays and deductibles, as well as other
ancillary expenses associated with a covered illness or accident."
The new MedSupport product:
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offers coverage to employees and their families;
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provides lump sum benefits directly to the covered individual;
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is sold only at the worksite and paid through payroll deduction;
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provides coverage for life as long as premiums are paid;
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includes a benefit for specified diagnostic tests, under an enhanced plan;
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offers an optional rider for the costs of emergency care; and
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allows employees to continue coverage at the same benefit amount and premium if
they retire or leave the company.
The release of MedSupport expands UnumProvident's supplemental benefits
portfolio to provide insurance options for all types of medical events –
inpatient, outpatient and catastrophic. The new product is expected to have the
strongest appeal with small and mid-size employers – especially those
introducing changes, such as higher deductibles, co-insurance or co-payments,
to their health care plans.
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