hospital cash benefit

Hospital Cash Benefit

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Understanding what hospital cash benefit means and how it works 

What is a hospital cash benefit in health insurance? 

The meaning of hospital cash benefit can also be known as in-patient cash benefit, in-patient hospital cash benefit and state hospital cash benefit in your medical insurance policy. It is health insurance benefit where monies are paid by the insurance company when treatment and/or accommodation for medical treatment, that would otherwise be covered under the insured’s plan, is provided in a hospital where no charges are billed. 

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How is hospital cash benefit claimed? 

Hospital cash benefit is not available if you claimed against another insurance plan.  

This benefit can be claimed for treatment that would have ordinarily been eligible under this policy and was received free of charge, or where you choose a room type of a lower standard than you are eligible for, a defined cash benefit will be paid for each night the insured person receives in-patient treatment. If the hospital cash benefit is selected, your deductible (excess) will not be applied to this benefit. 

How much is the typical amount of coverage for hospital cash benefit? 

The amount of coverage for hospital cash benefit varies from insurer to insurer. However, it typically ranges from a daily hospital cash allowance of USD 125 to USD 850 (per night) available from 20 nights to a maximum of 60 nights. The figure will not exceed the amount insurance companies would have paid if you received treatment in a room that we would have normally covered under your hospital cash benefit plan.  

Our Advice 

International medical insurance providers make amendments to their health insurance policies usually on annual or bi-annual basis. Occasionally, these modifications will mean adding or taking away benefits or benefit limits the terms and conditions. When your health insurance company makes a change, always check to see how it impacts you as it relates to your medical requirements because it may require a switch to another medical insurance policy.