What is hospital indemnity insurance?

Hospital indemnity insurance is supplementary insurance that complements your medical insurance and helps pay for the cost of inpatient hospital copays. Unlike primary health insurance, which typically covers a portion of medical costs, hospital indemnity insurance offers fixed cash benefits that are paid directly to the policyholder, not the hospital or medical provider. These benefits can be used to pay for medical bills and personal costs that arise from hospitalization.

How does hospital indemnity insurance work? 

It provides a cash benefit to you depending on your plan and the length of your hospital stay. Additionally, some plans have no medical underwriting for those age 69 and younger. The claims process is typically simple. You need to submit proof of the hospitalization and complete a short and easy claim form. For a higher monthly premium, some hospital indemnity plans offer additional riders that can be added on to help cover certain hospital-related services, such as outpatient surgery, emergency room visits, or ambulance services. 

Who can benefit from hospital indemnity insurance? 

• Those on Medicare Advantage Plans: Some adults may worry about the unexpected cost of hospital co-pays, especially if they are on a fixed income. This additional insurance can complement your medical plan and provide peace of mind. 
• Individuals on High Deductible Health Plans: Those who have to pay higher out-of-pocket costs before their insurance company starts to pay its share could benefit from the additional financial support. 
• Families with Dependents: Families can use the money to help with household expenses, such as childcare, if a parent is hospitalized. 
• Employees: Some employers offer hospital indemnity insurance as part of their benefits package to provide additional financial security for their workers. 

How much does hospital indemnity insurance cost? 

Premiums vary by age but generally range between $25 and $30 per month. Depending on the plan, the annual premium for hospital indemnity insurance could potentially be less than the co-pay for a one-day hospital stay. 

Have questions about hospital indemnity insurance? 

Our team is here to help! We can explain how hospital indemnity insurance works, provide you with a quote, and help you enroll. Schedule a call or call us and one of our advisors will reach out to you. 

Call: 877.222.1942  Schedule a Call