What are Hospital Indemnity Plans?
Hospital Indemnity Plans
-help pay for expenses in addition to coverage by your Medicare, Medicare Supplement, or Medicare Advantage Plan.
–pay benefits in cash directly to the Insured, not to the provider unless requested.
-is supplemental, or secondary coverage, not comprehensive health coverage.
Example of Benefits :
– Choose from Multiple Benefit levels: for example 5, 7, or 10 day stays
Benefit levels are designed around primary hospital insurance co-insurance or co-pays. Select a level that is above your primary insurance coverage to hedge against future increases in your primary cost sharing or incidentals not covered by your primary insurance.
– Most plans cover short Observation stays at reduced confinement benefit: for example 50%
There is a rising frequency in the use of hospitalization for observation. When a patient is not fully admitted, the primary hospital insurance policy may not cover observation stays. A Hospital Indemnity policy covers some of this unexpected expense.
♦Emergency Room (contingent on hospitalization)
– Most plans restrict the number of ER visits per year. Some plans allow up to 4x/year, others less. Select the plan that is affordable to you and that covers the expected need considering your health status. No one has a crystal ball, but common sense uses both history and probability to make a prudent choice.
Some plans may also offer optional riders such as:
♦Ambulance Transportation* ♦Primary Care Physician visits ♦Skilled Nursing Care ♦Outpatient rehab ♦Dental ♦Lump sum cancer
(*some policies cover this in the basic benefits)
⇒ These plans work with (supplement) your existing health care policy. They are NOT designed to replace your existing health care policy.
Hospital Indemnity plans are not only an excellent way to insure against the cash demands of plan deductibles and co-pays, but also for unexpected costs associated with hospitalization, such as spouse transportation visits, meals, etc. Some people refer to them as “tie-in” plans because they work to fill gaps in coverage your primary hospital insurance does not pay.
premiums are commensurate with your coverage choice