New report from Eastbridge examines growing hospital insurance market

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Report Shows Rising Competition, Rapid Evolution of Complementary Hospital and Medical Products

AVON, Conn., October 13, 2022 /PRNewswire/ — More insurers than ever are offering hospitalization insurance, with significant sales growth fueled, at least in part, by heightened awareness of the need for coverage due to the pandemic.

This is one of the conclusions of the new Eastbridge report Voluntary hospital allowance and complementary medical products Spotlight™ report. The report examines the current market for voluntary hospital indemnity and complementary medical care based on survey data from 26 voluntary insurers and 29 different hospital indemnity/compensation plans.

Sales increased by 9% last year, reaching an all-time high $780 million. To stay competitive in this growing market, many carriers are focusing on flexibility, the report says.

“For many insurers, a flexible product means not only expanding the type of benefits covered and the dollar amounts paid, but also flexibility in terms of underwriting guidelines, claims payment and pricing,” said Danielle Lehman, principal consultant of Eastbridge. “Carriers are also reporting demand for HSA and non-HSA compatible plans.”

Other key findings of the report include:

  • The group’s products dominate the market. Of the 29 plans described in the report, only three are individual products, and all but one of the 10 new plans introduced in the past five years are group products.
  • Underwriting guaranteed issues has become the norm. Almost all profiled plans offer coverage without asking medical questions to determine eligibility.
  • Market demand is driving coverage of more conditions. More carriers are covering mental health, addictions, newborn care, and observation unit stays.

Information on the purchase of Voluntary hospital allowance and complementary medical products The Spotlight™ report is available at Eastbridge website. Interested persons can send an e-mail [email protected] or call (860) 676-9633.

About Eastbridge Consulting Group

Eastbridge Consulting Group, Inc.. is a marketing consulting firm serving companies focused on the worksite compensation market in United States and Canada. Follow Eastbridge on LinkedIn at https://www.linkedin.com/company/eastbridge-consulting-group.

SOURCE Eastbridge Consulting Group

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