Voluntary
Supplemental Medical and
Hospital Indemnity Plans 2005
Last year we reported that the fastest growing product line
for worksite and voluntary sales in 2003 was the “supplemental
medical” line, which includes voluntary hospital indemnity,
medical supplement, mini-medical, or medi-gap products. The 2004
results aren’t in yet, but early returns indicate that
this trend is continuing.
These sales results are certainly not surprising when you think
about the fact that medical costs are skyrocketing along with
the number of uninsured. Even those who once had comprehensive
health plans are facing decreased coverage and/or increased out-of-pocket
expenses. Clearly, the need for coverage to help pay for these
expenses is compelling. Voluntary hospital indemnity, medical
supplement, mini-medical, or medi-gap products are all designed
to help employers offer alternatives to employees.
In 2003, we issued our first spotlight report on this line of
products. In that report, we predicted that this market would
continue to evolve as more carriers “dusted off” and
enhanced their hospital indemnity plans and as others developed
new products that either fill in gaps left by medical plans or
protect those not presently covered. And our predictions were
right.
Over the past two years we’ve seen some new product development.
Our newest study, Voluntary Supplemental Medical and Hospital
Indemnity Plans 2005, sheds light on the current products
offered and provides carriers with insight on this ever-changing
market. Specifically, the report examines the current state of
the market from four different perspectives: employers, employees,
producers, and carriers. It also takes a close look at the practices
of 15 supplemental medical or hospital indemnity providers, including:
- Product features
- Prevalent underwriting parameters
- Distribution systems
- Target markets/typical buyer profiles
Order Info: Voluntary
Supplemental Medical and Hospital Indemnity Plans 2005 is
available for purchase for just $2,000 for new buyers or $1,250
for those who purchased the 2003 report. . To purchase
a copy, you can email Eastbridge at info@eastbridge.com or
call (860) 676-9633. Published
2005.
Table of Contents
1. Executive Summary
A. Report Objectives
B. Report Structure
C. Key Findings
D. Eastbridge Insights
1. Observations/Conclusions
2. Recommendations
2. Market Overview
A. The Need
1. Overview
2. Product Drivers
B. The Employer
Perspective
1. Employer Concerns
Over Health Care
2. Hospital and Medical Supplemental Benefits
Currently Being Offered
C. The Employee
Perspective
1. Concerns about
Health Care
2. Hospital Indemnity or Medical Supplement
Product Ownership
3. Satisfaction
4. Interest in Purchasing
D. The Producer
Perspective
1. Hospital or
Medical Supplement Sales
2. Future Sales of Hospital or
Medical Supplement Plans
3. Carrier Marketing and Results
A. Methodology
B. Prevalence of Hospital Indemnity/Medical
Supplement Products
C. Major Competitors
D. DistributionE. Target Markets
F. Market Positioning
G. Packaging
H. Estimated Sales
I. Profitability
1. Penetration
2. Persistency and Retention
J. Claims
K. Demographics
L. Average Premium
M. Future of These Products
N. Concerns for the
Future
4. Product Details by Carrier
A. General Information
1. Product Type and Platform Offered
2. Portability
B. Benefits
1. In-Hospital Benefit
2. Hospital Admissions
Benefit
3. Outpatient Benefit
4. Physician’s Benefit
5 Intensive Care
Benefit
6. Screening or Preventative Benefit
7. Other
Benefits
8. Differentiating Features
C. Policy Limitations and Exclusions
1. Lifetime Maximums
2. Elimination Periods
3. Pre-Existing Exclusions
4. Mental and Nervous
Disorders
5. Other Limitations and Exclusions
D. Other Policy Provisions
1. Renewability
2. Termination for Age
3. Coordination of Benefits
E. Costs
1. Rate Structure by Gender
2. Rate Structure
by Age
3. Rates Based on Issue or Attained Age
4. Rates
and Risk Classes
5. Smoker/Non-smoker Rates
F. Underwriting
1. Unacceptable Accounts
2. Minimum Account Size
and Participation Requirements
3. Age Guidelines
4. Full-Time and Part-Time Eligibility
5. Minimum
Length of Employment
6. Guaranteed Issue Guidelines
7. Health Questions
8. Other Coverages
9. MIBs and Lab Tests
10. Other Underwriting Questions
G. Commissions
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