COLUMBIA, S.C. (June 20, 2005) – H.I. SecureÒ, ahospital confinement indemnity product addition to the Colonial Supplemental Insurance product portfolio, provides a solution for employers adopting high-deductible health plans to help manage increasing health insurance costs. H.I. SecureÒ is an individual product that offers lump-sum benefits for hospital admission and flat daily benefits for hospital confinement and hospital intensive care unit confinement. Because H.I. SecureÒ provides only lump-sum and daily hospital confinement benefits, it meets the definition of permitted hospital indemnity coverage with a health savings account.
“More employers are increasing deductibles on their health insurance plans, which passes along additional costs to employees,” says Monica Francis, director of product marketing at Colonial. “With this benefits program design strategy, we’re seeing employers also offering employees a personal health account that employees can use to help pay for additional medical expenses.”
A new and popular type of personal health account is the health savings account, in which the employer, employee or another individual can make tax-deferred contributions to the HSA account and use the funds to pay for additional medical expenses. “Employers are looking for insurance products that are permitted under HSA rules,” Francis adds. “H.I. Secureâ fits the bill.”
Employers who offer H.I. Secureâ in conjunction with an HSA can help their employees:
· Cover all or some out-of-pocket expenses, such as hospital confinement costs, that they would otherwise have to pay for out of their HSA.
· Help conserve the HSA funds they've accumulated, particularly when they're just beginning to build their account, allowing their HSA funds to grow on a tax-deferred basis.
· Help prepare financially for the unexpected costs associated with a hospital stay and budget for such expenses before a crisis occurs.
“A big advantage of including a voluntary product like H.I. Secure® in an employer’s benefits program is that it gives employees another way to help manage their increasing financial risks for medical expenses,” says Francis. “Employees can use H.I. Secure® benefits to help offset higher health insurance deductibles and copayments, as well as medical expenses related to a hospital stay, and save the money in their HSA for future medical expenses.”
Employers can fund all or a portion of the H.I. SecureÒ premiums or allow employees to pay the premiums themselves. H.I. Secure® offers coverage options for employee; employee and spouse; employee and dependent children and for employee; spouse and dependent children, and is currently available for sale in 34 states.
For more information about Colonial’s products and services or opportunities with the company, call Monica Francis at (803) 798-5555, ext. 8448, e-mail her at mlfrancis[at]coloniallife.com or visit www.coloniallife.com.
About Colonial Supplemental Insurance
Colonial Supplemental Insurance is the marketing brand of Colonial Life & Accident Insurance Company. Colonial is a market leader in providing voluntary insurance to employees and their families through the workplace, along with personal benefits communication, enrollment capabilities and a commitment to service. Colonial Supplemental Insurance products are underwritten by Colonial Life & Accident Insurance Company and include a broad portfolio of insurance coverages, such as disability, accident, life, cancer, critical illness and hospital confinement indemnity insurance policies. Similar products, if approved, are underwritten in New York by a Colonial affiliate, The Paul Revere Life Insurance Company.