Supplemental coverage
Hospital Indemnity Insurance
Cash benefits paid directly to you when you are admitted to the hospital, to use however you need.
Overview
Hospital indemnity insurance pays a fixed cash benefit for each day you are confined to a hospital, and often for related events such as ambulance trips, emergency room visits, observation stays and skilled nursing care. The money is paid to you, not the hospital, so it can cover plan copays and deductibles, travel, lost income or anything else. It is a popular companion to Medicare Advantage plans, which commonly charge a daily copay for the first several days of a hospital stay.
Key benefits
- Fixed daily benefit paid directly to you, not the provider
- Helps cover Medicare Advantage hospital copays and deductibles
- No provider networks; use any hospital
- Optional riders for ambulance, ER, observation and skilled nursing
Who it’s a good fit for
- Medicare Advantage members facing daily hospital copays
- Anyone on a plan with a high deductible or out-of-pocket maximum
- People who want cash on hand for the non-medical costs of a hospital stay
Hospital Indemnity FAQs
Does hospital indemnity insurance replace my health or Medicare coverage?
No. It is supplemental insurance that pays in addition to your primary coverage. You keep your Medicare, Medicare Advantage or other health plan and receive the indemnity benefit on top of it.
How is the benefit paid?
You file a claim after a covered hospital stay and the insurer pays a lump sum based on the number of days and the benefit amount you selected, for example $200 or $300 per day. The payment goes to you and can be used for any purpose.
Do I need a medical exam?
Most plans use simplified underwriting with a few health questions, and some are guaranteed issue during certain enrollment windows. A licensed agent can tell you which plans you qualify for.
Can I buy it at any time of year?
Yes. Hospital indemnity plans are not tied to Medicare enrollment periods, so you can apply whenever you like.
Ready to compare plans?
Get free quotes online or talk to a licensed agent today.