Hospital Indemnity Plan

Hospital indemnity insurance is a type of supplemental insurance that can help you avoid massive medical debt.

The American Hospital Association says over 33 million people in the U.S. are admitted to a hospital every year, many of whom may not be prepared for the cost. Even with proper health insurance, out-of-pocket costs can lead to financial strain—the average cost of a three-day hospital stay is $30,000, according to HealthCare.gov.

The American Bankruptcy Institute says medical debt is one of the leading reasons for bankruptcies. The U.S. Census Bureau estimates that 19% of American households carry medical debt with the median medical debt $2,000. Hospital indemnity insurance can provide a financial safety net if you’re hospitalized and left with significant medical bills to pay.

Hospital indemnity insurance is an insurance plan you can purchase in addition to your health insurance plan.  You pay a monthly premium, just as you do for other insurance, and if you end up spending time in the hospital, you receive a fixed benefit amount paid directly to you to help cover expenses.

A hospital indemnity insurance payment could be used for anything, though people often use the benefits for deductibles, coinsurance, transportation, medications, rehabilitation or home care costs. You can also use the money to pay for some expenses incurred as you recover, such as groceries and childcare.

Hospital indemnity insurance payouts are sent directly to you as the policyholder. That’s unlike health insurance, which contracts with providers and pays them directly.

• Daily Hospital Confinement
• Emergency Room Benefits
• Observation Unit Benefits
• Optional Lump Sum Cancer Benefit
• Optional Ambulance Benefit
• Optional Skilled Nursing Facility Benefit
• Optional Wellness Benefit