Hospital Indemnity
What is Hospital Indemnity Insurance?
Hospital Indemnity Insurance is optional supplemental coverage that may pay you fixed cash benefits for covered hospital events, based on the policy’s terms. In many plans, benefits are paid directly to you and can be used to help with out-of-pocket medical costs like copays, coinsurance, or deductibles, or with everyday expenses during recovery such as transportation, meals, or household bills. Benefits are not based on the hospital’s actual charges and may be more or less than your expenses; coverage varies by plan and carrier, and limits, exclusions, and waiting periods may apply
Hospital Indemnity Insurance
Financial Protection for Your Hospital Stay
Hospital Indemnity A Safety Net When Life Happens
What Cash Benefits Help Pay For
Example Cash Benefits for a 3-Day Stay
$1,500 Hospital Admission
+$250 Ambulance Ride
+$600 Overnight Stays
+ $250 Ambulance Ride
= $2,350 Paid Directly to You
Benefits ease your family’s finances while you recover.
* Benefits payout varies with diagnosis & length of stay
**No medical exam needed, eligibility varies by state
Medicare Supplement
Real World Event Example
Mary, a client of Compare Supplemental Health, chose a high-deductible Medicare Supplement plan because it gave her a lower monthly premium. She understood that if she needed care, she would have to pay more out of pocket before her supplement began covering costs.
Later that year, Mary was hospitalized for 4 days with pneumonia. Medicare covered its share, but since she had a high-deductible supplement, she still had expenses before meeting her deductible. Fortunately, Mary also had a hospital indemnity plan that paid $1,500 upon admission and $200 per day for the next 3 days.
That meant Mary received a total of $2,100 in cash benefits. She used that money to help pay medical bills and other household expenses while she recovered. For Mary, the hospital indemnity plan helped bridge the gap between saving on premiums each month and handling the higher out-of-pocket costs that came with a hospital stay.
Medicare Advantage
Real World Event Example
John, another client of Compare Supplemental Health, enrolled in a Medicare Advantage prescription drug plan (MAPD) because it gave him all of his Medicare coverage in one plan, along with extra benefits like drug coverage, dental, and vision. But like many MAPD plans, it still came with copays, coinsurance, and a hospital cost share if he had an unexpected inpatient stay.
Later that year, John was admitted to the hospital for 5 days after a fall. His MAPD plan covered the hospitalization, but he was still responsible for the plan’s inpatient hospital copays. Thankfully, John also had a hospital indemnity plan that paid $1,000 upon admission and $250 per day for the next 4 days.
That meant John received $2,000 in cash benefits. He used the money to help cover his hospital copays, follow-up expenses, and other bills while he recovered. For John, the hospital indemnity plan helped soften the out-of-pocket costs that can still come with a Medicare Advantage plan.
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