Supplemental health insurance
Cash in your pocket when a hospital stay hits your budget.
Hospital indemnity insurance pays you a set dollar amount when you're admitted to the hospital — no matter what the bill is. Use it for copays, your deductible, rent or groceries. It's a supplement to your health coverage, not a replacement.
- Paid directly to you
- Pairs with Medicare Advantage or ACA plans
- Fixed, predictable benefits
How it works
What a hospital indemnity plan pays
Per admission
A lump sum when you're admitted as an inpatient.
Per day
A daily amount for each day you're in the hospital, often more for intensive care.
Optional riders
Some plans add benefits for observation stays, outpatient surgery or ambulance rides.
Benefit amounts, limits and riders vary by carrier and state.
Who it helps
Where it fits best
Medicare Advantage members
Many Advantage plans charge a daily copay for hospital stays, up to a yearly out-of-pocket maximum. A fixed cash benefit can help cover it.
High-deductible health plans
If your deductible is in the thousands, a hospital stay can mean a big bill up front. A cash benefit helps close the gap.
Lost-income worries
The benefit is paid to you to spend however you need — including household bills while you recover.
Hospital indemnity pros and cons
Pros
- ✓ Pays you directly, regardless of your medical bill
- ✓ Often lower premiums than other coverage
- ✓ Helps with copays and deductibles
- ✓ Money can be used for anything
Cons
- ✕ Not health insurance and doesn't replace it
- ✕ Pays fixed amounts that may be less than your costs
- ✕ Pre-existing conditions may be excluded for a period
- ✕ Yearly benefit limits may apply
Hospital indemnity FAQ
Is hospital indemnity health insurance?
No. It's a limited-benefit supplement that pays fixed amounts. It doesn't count as minimum essential coverage and doesn't replace an ACA, employer or Medicare plan.
Who gets the money?
You do, unless you choose to assign it. You can spend it on medical bills or anything else.
Does it work with Medicare Advantage?
Yes. It's a common pairing because many Advantage plans charge daily hospital copays. It isn't Medicare Supplement insurance, and it doesn't work like a Medigap plan.
Are pre-existing conditions covered?
Many plans limit benefits for pre-existing conditions for a period after coverage starts. The rules depend on the plan and your state.
How much does it cost?
It depends on your age, state, the benefit amounts you choose and any riders. A licensed agent can compare plans from several carriers.
Sources
Last reviewed by a licensed agent. Figures change each year — confirm current amounts at the sources above.
Protect your budget from a hospital stay.
Compare hospital indemnity plans from multiple carriers — free.