Hospital Indemnity Insurance

Hospital Indemnity Plans

Are you covered by a Medicare Advantage plan with inpatient hospital co-pays? Chances are your health insurance plan leaves you with out-of-pocket expenses. If you’re covered by individual health insurance, group medical insurance, or Medicare, you know all too well that co-pays and deductibles are a reality.

If you need help with hospital co-pays or incidental expenses not covered by your medical insurance, Hospital Indemnity Insurance may be the perfect solution. Hospital Indemnity Insurance can offer coverage to help with these expenses. This type of insurance can pay you a daily benefit to help with hospital co-pays. It can also be used to help with incidental expenses not covered by your medical insurance.

Some policies may pay you additional benefits beyond inpatient hospital stays. Ambulance trips, skilled nursing facility visits, outpatient surgery, and durable medical equipment are just a few of the ancillary benefits available with Hospital Indemnity Policies.


What Is Hospital Indemnity Insurance?

Hospital indemnity insurance is a unique type of insurance policy that covers expenses your insurance company or Medicare does not pay if you are hospitalized. These expenses can amount to many thousands of dollars depending on the length of your hospital stay. 

Hospital indemnity coverage is designed to be used as additional coverage to protect you and works alongside of your traditional health insurance policy or Medicare policy. This includes out-of-pocket costs like hospital deductibles and co-pays. 

What Hospital Indemnity Insurance Covers

Hospital indemnity insurance is designed to cover significant expenses in a wide range of events. In particular, this insurance is designed to cover what your medical insurance does not in the case of events like:

  • Hospitalizations: Whether you are hospitalized for surgery or another reason, hospital indemnity insurance will help pay your bill. 
  • Intensive Care: Intensive care can come with significant costs that your medical insurance may not cover. Hospital indemnity insurance helps to alleviate the financial risk of these services. 
  • Critical Care: If you are admitted to a critical care unit, your hospital indemnity insurance coverage will help take care of the expense. 

Hospital indemnity insurance plans cover the events above, with slightly higher premiums, these plans can also include services like:

  • Outpatient Surgery: Additional costs associated with surgery that does not take place in the hospital. 
  • Emergency Room Visits: These include visits in which you are not admitted to the hospital. 
  • Ambulance Services: Finally, you may be able to add coverage for ambulance services. 

What Hospital Indemnity Insurance Does not Cover

Hospital indemnity insurance was designed to be a supplemental insurance policy and is not a replacement for a health insurance policy. These plans do not cover basic healthcare needs like:

  • Doctor visits and routine checkups
  • Medical tests
  • Medical devices

Most hospital indemnity insurance plans come with coverage caps and limits. Some common limits on this type of insurance policy are:

  • Daily Benefit: Most plans offer a daily benefit valued between $100 and $1,000. 
  • Total Day Limit: Your plan may limit the total number of hospital days it will cover. 
  • Intensive & Critical Care Benefit Limits: These limits are typically higher than the daily benefit value, but may not be enough to cover the total cost of intensive or critical care. 

How Much Hospital Indemnity Insurance Costs

As with any other form of insurance, premiums for hospital indemnity insurance can vary wildly based on a number of factors. Those factors include:

  • Your Age: Premiums start out at around $10 per month for young, healthy adults, and they increase as you age. 
  • Your Health: If you have pre-existing conditions that make hospitalization more likely, you can expect to pay higher premiums. 
  • Your Insurance Company: Prices for services can vary from one insurance company to another. 
  • Coverage Amount: Larger coverage amounts come with higher premiums.  

How to Choose a Hospital Indemnity Insurance Plan

As with any other insurance plan, it is important to make sure that the hospital indemnity insurance policy you sign up for fits your unique needs. You should carefully consider things like payment times, coverage periods, family coverage, and what your current health insurance covers before you sign up. 

How Long It Takes to Receive Payment

Unlike traditional health insurance plans, hospitals seldom bill the hospital indemnity plan. Instead, your insurance company sends you money. Be sure you know how long it will take for you to receive your money and that you are comfortable with that period of time. 

How Long You are Covered

Decide the coverage caps that you what, including the number of days you will be covered in case you are hospitalized.

Do You Need Family Coverage?

If you have a spouse or children, you should strongly consider enrolling in a family hospital indemnity insurance plan. On a per-capita basis, these plans can be far less costly than plans for individuals, and they provide the peace of mind of knowing your entire family is covered. 

Get In Touch to Learn More About Your Options

A hospital indemnity insurance policy is a supplemental policy that fills in the gaps in your traditional health insurance policy. It is important to find a quality policy at a price you can afford. 

That is where an insurance agent comes in. I work with the leading underwriters in hospital indemnity insurance. This means I will be able to find the best plans at the best possible prices. Contact me to discuss your options.