Hospital Indemnity Insurance: What You Need To Know

Hospital Indemnity Insurance

If you've ever been in the hospital, you know how expensive such a stay can be. HealthCare.Gov estimates that the average three-day hospitalization costs around $30,000. If your insurance doesn't cover these expenses, you could be in financial jeopardy. But hospital protection can offer some security and peace of mind.

What Is Hospital Indemnity Insurance?

Hospital indemnity is supplemental coverage outside of your regular healthcare insurance plan. It can reimburse for hospital admissions costs that your primary insurer does not pay:

  • Ambulance trips
  • Intensive care stays
  • Outpatient surgery
  • Diagnostic tests
  • Emergency room costs

How Does Hospital Indemnity Coverage Work?

Your hospital indemnity plan kicks in after your regular insurance has paid any claims related to your stay. This can include leftover copays, deductibles, and other expenses not included in your primary plan. While most health insurance pays care providers directly, indemnity insurance payments are sent right to you.

Can I Add Coverage for Family Members?

Most hospital indemnity plans cover individuals, but others allow you to add family members and dependents. Keep in mind that doing so may increase your monthly premiums. Each indemnity plan is a little different, so you should carefully review your options.

Everyone needs a regular health insurance plan to cover medical costs. Hospital insurance provides an additional safety net for unexpected stays, potentially deflecting financial hardship.