Unexpected healthcare costs are hurting employees. This is what Lincoln Financial is doing to help

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Healthcare costs have been plaguing employees for decades — and that’s without factoring in the price of the unexpected.

Insurance company Lincoln Financial announced that it will add hospital indemnity insurance to its suite of supplemental health solutions available to its Group Benefits customers, according to a press release. The coverage provides claimants with a lump-sum payment for hospitalization or other covered events, in order to help their workers with expenses that may not be included in their traditional medical insurance.

“Employees are looking to their employers to offer supplemental health products that can help offset expenses arising from unexpected medical events,” said Ralph Ferraro, senior vice president and head of product at Lincoln Financial Group in the release.

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More than half of Americans cannot afford an unexpected hospital bill of $1,000 or more, according to Lincoln's June 2021 Monthly Consumer Sentiment Tracker. And 40% of people say that today’s environment has made them more concerned about paying for healthcare expenses than in previous years.

Lincoln Financial’s new plan gives employers the tools to begin solving that very problem. For example, if a covered employee or family member is admitted to the hospital or undergoes outpatient surgery for a covered illness or injury, the insurance company will provide a lump-sum payment of up to $10,000 depending on the plan design.

To build their plan, employees will choose one of the hospital benefits — admission or confinement — and then pick from the range of features and benefits to meet their workplace’s needs, which includes mental disorder and substance abuse treatment benefits, infectious disease-related tests and NICU admission and confinement benefits.

Hospital indemnity will be available in 26 states starting Jan. 1, 2022, according to the release. Additional state availability will follow in early 2022.

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