What is hospital indemnity insurance?
Hospital indemnity insurance is a supplemental policy that pays a fixed cash benefit when you have a covered hospital stay. Depending on the plan, it may pay a set amount for each day you're admitted, a lump sum per admission, or both. The benefit is paid in addition to whatever your health insurance pays, and it's typically paid directly to you.
Because the amount is fixed, it doesn't depend on what the hospital bills. You decide how to use the money: deductibles, daily copays, prescriptions, a mortgage payment, or groceries while you recover.
Who it's a good fit for
- Medicare Advantage members, since many plans charge a daily copay for inpatient hospital stays
- People with high-deductible health plans
- Retirees on a fixed income who want to protect their savings
- Anyone who would have trouble covering a sudden hospital bill
How it works
You choose a benefit amount and the features you want. Depending on the carrier, plans may also include optional benefits for:
- Observation stays, emergency room visits, or ambulance transportation
- Outpatient surgery
- Skilled nursing facility stays after a hospital stay
- Specific treatments, such as cancer treatment, on some plans
Many plans ask a few health questions, and some have waiting periods or pre-existing condition limitations before certain benefits apply. I'll walk you through exactly what triggers a payment under any plan you consider.
Why use a local independent agent
Hospital indemnity plans can look alike until you compare the details: how many days are covered, whether observation stays count, and how pre-existing conditions are handled. I compare plans from multiple carriers and look at your current health plan's copays to help you choose a benefit amount that fits. There's no cost to talk and no obligation.
Serving the Lake Norman area
Whether you live in Mooresville, Troutman, Cornelius, Davidson, Huntersville, or Denver, I can help you review your current plan's hospital costs and compare options by phone. I'm also licensed in 16 other states and Washington, D.C.
Hospital indemnity insurance is a supplemental, limited-benefit policy. It is not major medical insurance and is not a substitute for health coverage. Benefits, waiting periods, limitations, and exclusions vary by plan and state. The MacMillan Agency is not affiliated with Medicare or any government agency.