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Hospital Cash

Hospital cash is a supplemental benefit that provides a fixed daily payment when you are hospitalized, regardless of the actual cost of your care. It offers financial support to cover incidental expenses such as transportation, meals for family members, or other non-medical costs during recovery.

The benefit is paid directly to you, not the hospital, and is separate from regular health insurance coverage. Daily amounts typically range from $25 to $100, depending on the plan and duration of stay.

Example:

If your plan provides $50 per day and you are hospitalized for five days, you receive $250 in cash benefits.

What to Watch For:

Hospital cash usually applies after a minimum stay, such as 24 hours, and may exclude certain types of hospitalization like day surgery.

Related Terms

Health Insurance

Health insurance is a type of coverage that helps pay for medical and healthcare expenses not fully covered by Canada’s public health system. It protects individuals and families from the high cost of prescription drugs, medical services, and treatments that fall outside provincial or territorial government health plans. Health insurance can be obtained through an employer’s group benefits plan or purchased individually from a private insurer.

Healthcare Spending Account (HCSA)

A Healthcare Spending Account (HCSA) is a flexible, employer-funded benefit that reimburses employees for a wide range of eligible healthcare expenses not fully covered by their group insurance plan or a government health plan. It allows employees to use allocated funds toward medical, dental, and vision expenses based on their personal needs. The Canada Revenue Agency (CRA) regulates which expenses qualify under the Income Tax Act, and reimbursements from an HCSA are received tax-free.

Accidental Death and Dismemberment Insurance (AD&D)

Accidental Death and Dismemberment Insurance (AD&D) provides a tax-free lump-sum payment if you die or suffer a severe injury as the direct result of an accident. It is designed to offer financial protection for you and your family in the event of an unexpected, accidental injury or loss that causes death, dismemberment, or permanent disability.

Extended Health Care Insurance

Extended health care insurance (EHC) is supplemental coverage that helps pay for medical expenses not covered by your provincial or territorial health plan. It protects you from out-of-pocket costs associated with services such as prescription drugs, vision care, medical equipment, hospital upgrades, emergency travel medical care, and paramedical services like physiotherapy or chiropractic treatments.

Travel Insurance

Travel insurance provides financial protection for unexpected events that occur while you are traveling outside your home province, territory, or country. It helps cover emergency medical expenses, trip cancellations, interruptions, delays, lost luggage, and other unforeseen travel-related incidents. The most important component of travel insurance is emergency medical coverage, which pays for hospital and physician costs, medical evacuations, and repatriation in case of serious illness or injury abroad

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