Who it's for
- Medicare Advantage members who want help with daily hospital copays
- People who want extra cash on hand for a hospital stay
- Anyone with a high deductible on their current health coverage
- Families planning ahead for the unexpected
What it covers
- A fixed daily or per-stay cash benefit when you're admitted
- Benefits paid directly to you, to use as you wish
- On some plans, optional coverage for observation stays, skilled nursing or outpatient surgery
- Benefits paid in addition to your other insurance
How hospital indemnity plans work
Hospital indemnity insurance is supplemental coverage. It doesn't replace your health insurance or Medicare — it works alongside it. If you're admitted to the hospital for a covered reason, the plan pays a set amount, such as a benefit per day or per stay, straight to you.
Because the money comes to you, you decide how to use it: hospital copays, a ride home, prescriptions, groceries or a family member’s travel.
A natural fit with Medicare Advantage
Many Medicare Advantage plans charge a copay for each day of a hospital stay, often for the first several days. A hospital indemnity plan can be set up to help offset those copays, so the two can work well together. We'll look at your plan's hospital copays and choose a benefit amount to match.
What to compare
- The daily or per-stay benefit amount, and how many days it pays
- Whether it covers observation stays, which are billed as outpatient care
- Limits on pre-existing conditions and any waiting periods
- Extra riders such as skilled nursing, ambulance or cancer benefits
- The monthly premium and whether it can change
A simple example
Say your Medicare Advantage plan charges a copay for each of the first several days of a hospital stay, and you're admitted for four days. If your hospital indemnity plan pays a daily benefit, you receive a payment for each covered day — money you can put toward those copays or anything else you need while you recover. The real amounts depend on your plans, so we'll run the numbers using your own plan documents.
On the other hand, if your current coverage already keeps hospital costs low — for example, some Medicare Supplement plans pay the Part A hospital deductible and coinsurance — a hospital indemnity plan may add little value. If you don't need one, we'll tell you.
Good to know
Hospital indemnity plans aren't a substitute for major medical coverage or Medicare, and benefits are limited to the amounts in the policy. Most plans can be purchased at any time of year. Some ask health questions, and benefits for pre-existing conditions may be limited for a period after you enroll.
How we help
John will compare hospital indemnity options with you, explain exactly what triggers a payment, and help you choose a benefit that fills the gaps in your current coverage.
Common questions about Hospital Indemnity
Does hospital indemnity pay my hospital directly?
No. Benefits are paid to you (or someone you choose), and you decide how to use the money.
Can I have hospital indemnity with Medicare Advantage?
Yes. It's a separate policy that pays in addition to your Medicare Advantage plan, and many people use it to help with daily hospital copays.
Is an observation stay the same as being admitted?
No. Observation is considered outpatient care even if you stay overnight, and some policies don't pay for it. We'll show you which plans include observation benefits.
Can I buy it any time?
Usually, yes. Unlike Medicare plans, most hospital indemnity policies aren't limited to enrollment periods.
