Hospital Indemnity Coverage
What is it? Why do I need it?
Why do I need a Hospital Indemnity Plan?
No matter what kind of Medical Insurance you have, a trip to the hospital can be very expensive. With the average cost of a three day hospital stay being around $30,000 dollars it’s likely that you’ll have deductible or out of pocket expenses that could be significant.
Thats where Hospital Insurance can help. A Hospital Indemnity plan will pay a cash benefit directly to you if you are hospitalized. You can use this money however you choose. So you have financial support. when you need it most. This direct cash payment to you will be in addition to any hospital coverage you may already have through your current Medicare plan. Having the right insurance coverage helps to make sure that a trip to the hospital doesn’t wipe out your hard earned savings.
These plans are very affordable and easy to qualify for. When Turning 65 most plans make it possible to get coverage without any health questions and an application usually only take a few minutes. Often at less cost than a cup of coffee per day these are a great way to gain peace of mind when it comes to your healthcare.
Doesn’t Medicare Part A cover Hospitalization?
Well yes, but it doesn’t cover everything. In fact in 2021, Medicare Part A has a $1,484 deductible for an inpatient admission. Long story short this means that if you were to get admitted to the hospital without any additional coverages you would owe $1,484 even if you only stayed three days!
But I bought a Medicare Advantage plan.. I’m covered right???
Great Question! All Medicare advantage plans are required to cover Inpatient Hospitalization, but that doesn’t mean it covers all of the cost. In fact, most Medicare Advantage plans have a per day co-pay for inpatient hospital stays that can actually be quite expensive. Let me give you an example.
A Medicare advantage plan may have a co-pay of $300 dollars per day for each day someone is admitted in the hospital as an inpatient for the first 5 days. That means in this example that after a 5 day inpatient stay this person would receive a bill of $1,500 dollars.