Colonial Life & Accident Insurance Company has introduced a new group hospital confinement indemnity plan that can be used in conjunction with health savings accounts.[@@]

Colonial, Columbia, S.C., says the policy is HSA-compatible because it pays only lump-sum and daily hospital confinement benefits.

Colonial created the new product by cutting surgery visits and doctor’s office visits included an older hospital confinement policy that was not HSA-compatible, a company representative says.

Colonial is a unit of UnumProvident Corp., Chattanooga, Tenn.