Hospital stays don’t just take a physical toll. They make a financial impact as well, with the average cost of a three-day hospital stay adding up to around $30,000.1 Of that amount, you could be responsible for your medical insurance deductible, copayments and coinsurance, which could leave you owing thousands of dollars out of pocket.
Luckily, hospital indemnity insurance is here to help you focus more on recovery and less on hospital bills.
What is hospital indemnity insurance?
Hospital indemnity insurance is a type of supplemental health insurance that’s designed to help protect you from out-of-pocket expenses that often accompany a hospital stay. This coverage is meant to be purchased in addition to primary health insurance—not replace it—and it pays benefits regardless of other plans. It’s a great complement to employer-sponsored health insurance, private plans, Affordable Care Act plans and Medicare.
How are hospital indemnity insurance benefits paid?
You’re probably familiar with health insurance that pays your medical providers. Hospital indemnity insurance is different because it pays cash benefits directly to you or someone you designate, not to providers. This means you can use the money for any need, including medical bills and everyday living expenses while you’re on the mend.
What kind of hospital stays are covered?
According to the Centers for Disease Control and Prevention, septicemia, heart failure, osteoarthritis, pneumonia and diabetes mellitus are among the top reasons for hospital stays in the U.S.2 Hospital indemnity insurance pays benefits for all covered hospital stays, no matter if illness or injury lands you in the hospital. Hospital indemnity insurance coverage options could include daily hospital stay, day one hospital admission, intensive care unit, emergency room visits and ambulance trips, depending on the policy.
How does hospital indemnity insurance work?
Using hospital indemnity insurance coverage is simple!
- You fall ill and your symptoms keep worsening with difficulty breathing, a rapid heartbeat and fever that won’t subside.
- You go to the emergency room and are admitted with COVID and pneumonia.
- You file a hospital indemnity insurance claim, and your policy pays cash benefits directly to you. You use the money to help cover your health insurance deductible and your 20% coinsurance, plus cover your lost wages from missing work.
How much does hospital indemnity insurance cost?
Hospital indemnity insurance premiums are typically considered to be very affordable, with some plans starting at about $10 a month.3 The amount you pay will depend on the policy you select, your age, location and other factors.
Who should get hospital indemnity insurance?
Critical illness or injury can affect anyone at any time, making hospital indemnity insurance a helpful solution for most people, including:
- People who have high-deductible health insurance plans.
- People who know they have an upcoming covered procedure or surgery that will occur after their policy’s waiting period (if applicable).
- People who want peace of mind.
Ready to learn more about hospital indemnity insurance?
Hospital indemnity insurance is a great solution for protecting yourself against out-of-pocket medical bills. To learn more, get in touch with one of our agents!
LIMITED-BENEFIT POLICIES. Hospital indemnity policies have limitations and exclusions. For costs and complete details of coverage, contact an agent.
1U.S. Centers for Medicare & Medicaid Services, Why health insurance is important, https://www.healthcare.gov/why-coverage-is-important/protection-from-high-medical-costs/, 2023.
2Centers for Disease Control and Prevention, Hospitalization, https://www.cdc.gov/nchs/hus/topics/hospitalization.htm, August 2022.
3Forbes, What Is Hospital Indemnity Insurance?, https://www.forbes.com/advisor/health-insurance/hospital-indemnity-insurance/, March 2023.