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Hospital Indemnity Insurance & How it Works

When it comes to the health of you and your family, you want to do anything

to ensure the well-being of you and the ones around you.

The last thing that you should be worried about during an unexpected short-

term or long-term hospitalization, is your medical costs.

Hospital indemnity insurance, also known as hospital-confinement indemnity

coverage, helps to put your recovery first before hospital bills.

Hospital Indemnity & How It Works

What is Hospital Indemnity?

Like other supplemental coverages, indemnity health insurance is cheaper

than primary health insurance.

Hospital indemnity insurance adds to your existing health insurance by

helping cover the expenses for hospital stays.

Depending on the plan you choose, hospital indemnity insurance essentially

gives you a lump sum to help pay for added expenses during your recovery.

These plans generally pay according to the number of days of hospitalization.

Even though your medical insurance covers most of your hospital stay, you

can still receive payments from your plan for any extra recovery expenses and

medical bills.

How Does Hospital Indemnity Insurance Work?

Like most insurance plans, you pay a monthly premium for your hospital

indemnity insurance plan.

If you are admitted to the hospital for an illness or injury, your coverage sends

you cash payments to cover the costs of your stay, plus any additional


You can use these funds to pay for the costs that aren’t covered by your

primary health insurance, deductibles, copays, coinsurances, childcare

expenses during your hospital visits, or cost-of-living expenses during


Most indemnity health insurance plans aren’t limited to provider networks

and offer no deductibles.

Hospital Indemnity Insurance Coverage

Indemnity insurance plans typically cover the costs of medical services like:

○ Hospitalizations with or without surgery

○ Intensive or critical care

For higher monthly premium plans, some indemnity health insurance

plans may cover other hospital services such as:

○ Outpatient surgery

○ Emergency room visits

○ Ambulance services

Is Hospital Indemnity Insurance Worth it?

Hospital indemnity coverage is worth investing in if your existing coverage

has limits on hospitalization.

Keep in mind that your hospitalization needs may increase as you become

older, and a hospital indemnity plan can offer you relief and protection for the


Hospital indemnity insurance is beneficial to pair with your Medicare

Advantage plan. While all Medicare Advantage plans are required to cover

Inpatient Hospitalization, they don't always cover all of the costs. If you have

an MA plan with a copay of $300 per day for being hospitalized, that's still an

expensive $1,500 for a 5-day visit.

There are hospital indemnity plans with available costs at less than $1 per day

depending on age. In addition, when someone is in their 6-month window of

turning 65, there are typically NO health questions before signing up for a


Contact one of our representatives and we can set you up for peace-of-mind

regarding your health by finding a hospital indemnity plan that's right for you.

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