[CBC News] Last May, posts saying "I was shocked when I saw my indemnity insurance renewal notice" appeared one after another in an online community. The posts said that the premiums, which had been rising slightly every year, jumped significantly this time. In particular, this reaction was common among 4th generation indemnity insurance subscribers.

Indemnity insurance premiums were raised overall this year, but the increase for 4th generation subscribers was the most significant. This is a consequence of the loss ratio for 4th generation indemnity insurance soaring. A high loss ratio means that the insurance company paid out more money in claims than the premiums it collected. The problem is that the insurance payouts were not distributed evenly. While the majority of subscribers barely filed claims, a significant portion of the total payouts was concentrated on a few subscribers. In other words, the structure where the majority only paid monthly premiums while a few monopolized the benefits has ultimately led to an overall premium increase.

Amid this trend, the '5th generation indemnity insurance' was recently launched. Those looking to sign up newly can now only choose 5th generation products. While premiums are lower than previous generations, the coverage structure has also changed significantly. Because of this, the number of people searching for 'indemnity insurance recommendations' has noticeably increased. Since the coverage scope and co-payment ratios change with each generation, without proper verification, you might end up receiving less insurance money than expected and be flustered when claiming hospital bills later.

First, Check Your Indemnity Insurance Generation

The first thing to check is which generation of indemnity insurance you are subscribed to. Early generations broadly covered both covered and non-covered treatments combined, but as generations progressed, the co-payment ratio increased and non-covered items were separated into separate riders. The previous generation, the 4th generation, had high co-payments in exchange for low premiums, and the structure was such that premiums would rise significantly the following year if non-covered treatments were heavily used.

The key feature of 5th generation indemnity insurance is that it divides non-covered treatments into 'critical' and 'non-critical' categories, designing coverage differently. For critical non-covered treatments such as cancer and cerebrovascular diseases, it maintains the existing level of co-payment ratios while introducing a new annual co-payment cap, creating a structure that actually reduces the burden when a major illness strikes. On the other hand, for non-critical non-covered treatments such as chiropractic manipulation, extracorporeal shock wave therapy, and non-covered injections, the co-payment ratio has increased and the coverage limit has been reduced. For those who do not visit the hospital often and want to focus on preparing for major illnesses, the 5th generation may be advantageous. However, for those who frequently receive chiropractic manipulation or non-covered injections, it may be better to maintain their existing indemnity insurance.

Precautions When Signing Up or Switching

If you are an early generation subscriber, there is no need to rush into switching. A conversion support system for early indemnity insurance subscribers is scheduled to be implemented soon, and premium benefits may vary depending on the timing of the switch. Additionally, there is a system in place that allows you to return to your previous insurance if you have no history of filing claims within a certain period after switching. Therefore, rather than blindly rushing to switch, it is more reasonable to first review your hospital visit patterns.

When considering switching or signing up anew, you should not only look at the premiums but also examine your recent hospital bill expenditures. If you have frequently used chiropractic manipulation, non-covered injections, or MRIs, changes in coverage limits and co-payment ratios will have a significant impact on your actual burden. Carefully comparing the coverage details and premiums of various insurance companies will serve as a useful reference for finding an 'indemnity insurance recommendation' that suits you.

This hike incident, sparked by a single renewal notice, once again demonstrated that indemnity insurance is not a case of "just sign up and you're done." The most certain way to reduce hospital bill burdens is to cultivate a habit of regularly checking indemnity insurance recommendation information and verifying whether your current insurance is still the right product for you.

[This article was written with the assistance of AI. This article is based on currently publicly available information, and we recommend verifying the facts once more.]