Hospital Indemnity

Other than government-led health insurance programs such as Medicare, there are many other types of health insurance plans.

Hospital indemnity plans are a unique supplemental insurance product that pays you when specific events associated with hospital visits occur in your life.

The way these plans work can be quite complex, so please continue reading to learn how hospital indemnity plans can help make your healthcare needs more affordable.

A hospital indemnity insurance policy could be a good solution if you’re concerned about potential health costs, including if you expect to need medical care or have a child.

Also, this insurance policy could also be a wise decision for people with a high-deductible health plan and/or a health plan with large out-of-pocket costs.

How Do
Hospital Indemnity
Plans Work?

The purpose of hospital indemnity plans is to pay for hospital costs that may not be covered by other forms of insurance.

This form of insurance can be beneficial because many Americans do not have enough savings to reasonably afford unexpected medical expenses.

When you purchase a hospital indemnity plan, certain events may trigger your plan to pay you a set amount. For example, your plan may offer you $250 for every night you spend in a hospital bed.

If you spend three nights in the hospital, your plan will allow you a total of $750. This money can be used for any purpose, but many policyholders use the extra money to pay medical copays, deductibles, and other expenses

Indemnity In

Imagine that you own a hospital indemnity plan and get admitted to the hospital for an emergency appendectomy.

Although you have medical insurance, you may still need to pay a significant amount of money to cover your policy’s deductible.

With a hospital indemnity plan, you will be granted a benefit payment that helps you reach your deductible without cashing out your savings.

Who Should Buy
Hospital Indemnity

Hospital indemnity coverage is ideal for individuals who do not have significant savings available. If you have an emergency medical event, your indemnity plan will help you manage the cost of treatment.

Also, you might want to consider this type of policy if you are in a situation where your current insurance policy places limits on your hospitalization and medical services coverage that are not suitable for you.

People who are pregnant or expecting to have a child soon can also benefit from hospital indemnity plans because they also provide payments for maternity visits and other childbirth-related events.

Also, hospital indemnity is a good choice for you if you want extra coverage in case of accidents, have a high-deductible health insurance plan, which has higher out-of-pocket costs, or if you expect to need out-of-network care and want help to pay for the extra costs.

What Is
Covered By
Hospital Indemnity

Hospital indemnity plans generally pay for hospitalizations, surgery, intensive care, and critical care. Some hospital indemnity insurance policies may also cover outpatient surgery, ambulance services, and emergency room visits.

This specific insurance provides you with a payout based on circumstances related to your individual health care needs.

Hospital indemnity insurance payouts are sent directly to you as the policyholder which is not the case with health insurance that contracts with providers and pays them directly.

Unlike the usual health insurance that has certain limits on which services are covered and in what amount, hospital indemnity insurance can be distributed in whatever way you need and like.

This type of plan doesn’t have deductibles, coinsurance, or network restrictions, and may also cover your spouse and family.

If you want a broader range of benefits, you may have to purchase a premium plan.

Premium indemnity plans have higher premiums but may cover additional costs, such as outpatient surgery, emergency room visits, and ambulance services.

Hospital Indemnity
Plan Cost

There is no exact number that can be estimated for the cost of hospital indemnity insurance. Plan costs vary greatly based on the level of benefits featured in the plan.

Similar to most insurance plans, costs also vary based on several factors, including your age, location, and your health insurance company.

For example, plans that offer minimal benefits can be found for as low as $7. For more comprehensive coverage, you can find more extensive plans that cost up to $463 per month.

Hospital indemnity insurance can be a way to get financial assistance and keep you from racking up medical debt, but remember that they are supplemental plans and aren’t a replacement for health insurance.

How to
apply for Hospital
Indemnity Insurance?

Unlike health insurance, there isn’t a marketplace available but you can start your search by asking your current health insurance plan provider to see if they offer hospital indemnity insurance.

If in any case your current health insurance provider does not offer it, you can find insurance companies or brokerages that offer other insurance plans and also provide this type of benefit.

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Before purchasing hospital indemnity insurance, think about your health history. If you’ve experienced frequent health events in recent years, you may be able to capitalize on the valuable benefits offered by a hospital indemnity insurance policy.

To find a plan that fits your budget and offers the benefits you need, get help from the talented agents at Texas Medicare Advisors. Our team is experienced and knowledgeable, so you can trust us to find you the best deal in your area. You can reach us at 512-900-3008.

Is Hospital Indemnity Insurance
Worth It For You?​

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