Unum introduces employer-paid group hospital coverage
CHATTANOOGA, Tenn. (April 23, 2018)- Unum (NYSE:UNM), a leading provider of employee benefits and income protection insurance, will offer employer-paid group hospital insurance beginning May 1. Insured employees receive a lump-sum benefit if they are hospitalized, which can be used to cover deductibles, coinsurance and other out-of-pocket costs. Plans are scalable and can provide employees from $500 to $5,000 to help defray unexpected hospital costs.
“For employers, offering group hospital insurance can be a cost-effective way to help protect their employees from financial stress,” said Carlos Bello, director, product and market development for Unum. “With out-of-pocket costs associated with hospitalization rising, offering employees hospital insurance can help sweeten a benefits package to attract and retain top talent.”
Being admitted to a hospital for child delivery or following an accident or illness can be costly. Even quality medical plans can leave employees with expenses they didn’t anticipate that add up quickly. With an increasing number of employees opting for high-deductible health plans, and the rising cost of health care, there is a widening gap between what is covered and what the employee is responsible for. Hospital insurance can cover deductibles and coinsurance – or costs medical insurance isn’t designed to cover, like replacing a caregiver’s income.
The financial strain on a family following an illness and hospitalization can be significant. According to a poll commissioned by Unum in January 2018 among 1,232 U.S. adults, nearly half (49 percent) of respondents had less than $1,000 in savings. Fifty percent of respondents said they could only pay their bills without assistance for two months or less should they be unable to earn an income. For those ages 18-34 - largely the Millennial generation that makes up the bulk of the workforce - that percentage increased to 65 percent.
Employers can contact their broker or Unum sales representative for specific details.