Guide to Hospital Cash Benefits in Group Medical Insurance

Guide to Hospital Cash Benefits in Group Medical Insurance

Guide to Hospital Cash Benefits in Group Medical Insurance

blüüm
employee benefits
Sep 28, 2021
Guide to Hospital Cash Benefits in Group Medical Insurance

Employers should always take the overall well-being of employees into consideration. To ease the financial burden of employees who suffer medical conditions, it is important for employers to choose the right group medical insurance plan to start with.


Group medical insurance plans with hospital cash benefits are particularly useful for when employees face huge expenses during hospitalisation. The cash benefits can compensate employees’ daily income loss due to hospitalisation. In this article, we are going to provide some useful guidance on hospital cash benefits in group medical insurance.


Why do we need Hospital Cash Benefits? 


What are Hospital Cash Benefits?

Hospital cash benefits are a fixed daily allowance that is paid to the policyholder for each day of hospitalization. For example, if you need to refrain from work and stay in the hospital, cash payments based on the duration of hospital stay will be paid out on top of existing hospital reimbursements of the group medical insurance. The cash payment is not compensation to the hospital expenses, which can be used flexibly for any purpose. 


Hospital cash benefits are available as part of group medical insurance plans, as well as standalone individual hospital cash insurance that individuals can purchase. Some employers may take out standalone individual hospital cash insurance plans for employees as a way to reduce cost, however, it is not recommended as an alternative to group insurance plans because it does not cover large part of the employee's expenses if hospitalised. Providing comprehensive protection for employees is also a form of protection for employers as well, from encountering tremendous loss in light of accidents.

Hospital cash benefits provide additional protection for employees

How is Hospital Cash Benefits covered in Group Medical Insurance?

Group medical insurance includes benefits that cover hospital medical expenses eg. hospital stay expenses and surgery fees, which indeed compensates a great portion of expenses when it comes to medical expenditure. However, hospital cash benefits can additionally safeguard employees to receive additional income subsidy, which further reduces employees’ financial pressure when work is not possible. Blüüm group medical insurance offers hospital cash benefits with up to HK$2000 per day, as well as an annual inpatient coverage of up to HK$ 750,000 with no confusing sub-limits, which takes unnecessary worries away from employees.


Will Hospital Cash Benefits under Group Medical Insurance clash with employees’ individual plans? 

The short answer for this question is No. 

Both plans do not clash. In the case of being hospitalized, employees can claim their individual plans, while still receiving hospital cash benefits from the company’s group medical plan to cover non-medical expenses. It is notable that hospital cash benefits should be seen as a supplement of group medical plans or individual medical plans, since the amount of cash is unlikely sufficient to cover the hospital treatment expenses.

Learn more about hospital cash benefits and group medical insurance for your company here, or feel free to WhatsApp us at +852 5379 8911 or email us at info@bluum.hk.


employee benefits
Sep 28, 2021
blüüm
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