Hospital Cash Insurance
What is Hospital Cash Insurance?
“Hospital Cash Insurance” refers to the cash benefit provided by an insurance company based on the number of days an insured person is hospitalized for treatment. This cash benefit may be more or less than the actual medical expenses incurred.
For example, if you have purchased Hospital Cash Insurance with a daily benefit of HK$2,000, you will receive HK$2,000 for each day you are hospitalized. If you are hospitalized for a total of 5 days, you will receive a total of HK$10,000 in cash compensation.
Many plans also offer double cash benefits for special circumstances, such as admission to an intensive care unit, diagnosis of cancer, or contracting specific infectious diseases.
In addition, Hospital Cash Insurance is generally not in conflict with your other medical insurance plans. You can be covered by Hospital Cash Insurance and other medical insurance plans or VHIS at the same time.
Coverage of Hospital Cash Insurance Plans
According to the data on Hospital Cash Insurance plans on the market, almost all plans only cover cases of “necessary hospitalization”. Congenital diseases and pre-existing conditions are not eligible for claims.
Some plans also specify that they will not cover certain occupations, such as actors, stunt performers, massage center employees, police officers, scaffolders, etc. Therefore, it is essential to understand the terms and conditions of the plan before purchasing and ensure that you are eligible for coverage.
Note: The above plan information is for reference only.
The Purpose of Hospital Cash Insurance: Who Needs It?
Hospital Cash Insurance serves two purposes: (1) income protection/economic support during hospitalization, and (2) to use the cash benefit to pay for medical expenses.
Income Protection
Hospital Cash Insurance is particularly suitable for self-employed individuals, such as taxi drivers, hairdressers, construction workers, or contract workers who are paid on a daily basis. If hospitalization leads to a loss of income due to inability to work, Hospital Cash Insurance can provide “income protection.”
The insured person does not have to turn down any treatment in the hospital due to concerns about income.
Paying for Medical Expenses
Honestly, anyone can purchase Hospital Cash Insurance, not just self-employed individuals.
Even if the insured person has medical insurance that provides “actual expenses reimbursement,” it may not cover all expenses because many plans have benefit limits, co-payments, or only offer compensation for a certain percentage of expenses.
In this case, Hospital Cash Insurance can supplement the “actual expenses reimbursement” medical insurance coverage, providing more flexible and comprehensive protection for the insured person.
Of course, if the medical insurance can fully reimburse the treatment expenses, the insured person can also use the Hospital Cash benefit as living expenses.
Can Hospital Cash Insurance be Purchased Independently?
Many company medical insurance or personal medical plans include “Hospital Cash” as a benefit item. However, the insured person can still purchase Hospital Cash Insurance independently according to their needs.
Is it Enough to Only Purchase Hospital Cash Insurance?
Although Hospital Cash Insurance has its unique benefits, it cannot fully replace medical insurance coverage. Hospital Cash Insurance only provides a fixed amount of compensation based on the number of days hospitalized, and some plans also have a limit on the maximum number of days of compensation. In addition, other medical expenses during hospitalization or after discharge are not covered.
If surgery is required during hospitalization, the expenses will be even higher, including room and board, operating theatre fees, anesthesiologist fees, miscellaneous expenses, etc., which are likely to exceed the compensation amount of Hospital Cash Insurance.
Therefore, Hospital Cash Insurance may not cover all expenses. It is not recommended to use it as a substitute for medical insurance. Simultaneously purchasing medical insurance can provide more comprehensive protection for medical expenses and personal income loss.
There is also Hospital Cash Coverage in VHIS!
Using Bowtie VHIS as an example, you can receive cash benefits in the following two situations:
- Undergoing Day Case Procedure (i.e., procedure that does not require hospitalization)
Bowtie will provide cash benefits calculated for each surgery:
| VHIS Flexi Regular | VHIS Flexi Plus | Bowtie Pink | |
| Cash benefit | HK$800/ surgery | HK$1,300/ surgery | HK$800/ surgery |
- Total and permanent incapacity income benefit
Bowtie will provide weekly income-based cash benefits:
| VHIS Flexi Regular | VHIS Flexi Plus | Bowtie Pink | |
| Cash benefit | HK$500/ week Up to 52 weeks | HK$800/ week Up to 52 weeks | |
It is worth noting that the above-mentioned cash benefits are attached to the plan, and customers do not need to pay any additional fees to obtain the cash benefits.
