Hospital Indemnity Insurance
What is Hospital Indemnity Insurance?
Hospital Indemnity insurance, also called Hospitalization insurance or Hospital insurance, is a plan that pays you benefits when you are confined to a hospital, whether you for planned or unplanned reasons. These plans also cover other medical services, depending on the policy.
These plans are specifically designed to help you fill gaps in your Medicare Advantage coverage by providing cash to help cover copays, coinsurance, deductibles, pharmacy bills, transportation, rehabilitation, or home care costs. You can also use the money to pay for some expenses incurred as you recover, such as groceries and childcare.
Hospital indemnity insurance payouts are sent directly to you as the policyholder. That’s unlike health insurance, which contracts with providers and pays them directly.
What does Hospital Indemnity Insurance cover?
Hospital indemnity insurance provides a payout to you based on circumstances related to hospitalization or other specific health care services. Typical health insurance has specifications on covered services whereas hospital indemnity insurance can be distributed in whatever way you need.
This type of plan doesn’t have deductibles, coinsurance or network restrictions.
Circumstances that would generally lead to payout would be:
Hospitalizations
Intensive Care
Critical Care
Some other costs that could be covered, but vary by policy, are:
Outpatient services
Ambulance services
Emergency room visits
Hospital indemnity insurance doesn’t cover medical care like a health insurance plan and it’s not a substitute for health insurance. It’s instead meant to supplement a health plan.
Hospital indemnity insurance won’t help you with regular doctor visits and tests. It is meant for more serious medical needs, such as hospitalizations.
Hospital indemnity insurance policies also have limits, including:
Hospital daily benefits, which is a set dollar amount that could be $100 to $1,000
Hospital benefit limit for total days, such as 180 consecutive days
Intensive care unit benefits, which could be 200% of the daily benefit, for example
Benefit reductions at a certain age, such as 70
What is the cost of a Hospital Indemnity policy?
Hospital indemnity insurance can start at about $10 a month for individual coverage, according to Cigna. You may pay much less if you get coverage through your employer as part of its benefits package.
Similar to most insurance plans, costs vary based on several factors, including your age, location, deductible (if applicable), insurance company and coverage amount.
You may pay much less for a hospital indemnity insurance policy through an employer. Protective offers policies through employers with coverage that costs between $2 and $18 per month for coverage that pays $100 per day for hospitalizations. People under 50 pay less than $5 per month.
Hospital indemnity insurance plans typically provide hospital daily benefits that vary depending on the policy. You’ll pay higher premiums for higher daily benefit limits. An insurance company may also provide different daily benefits for intensive care, outpatient surgeries, pregnancy and cancer treatments.
Use the form on this page to schedule a free consultation to learn more about Hospital Indemnity plans!
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