Hospital Indemnity Insurance: What You Need to Know

March 2, 2022
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2-minute read

If you’re admitted to the hospital suddenly, can you afford an extended hospital stay? Because 7 in 10 Americans are living paycheck to paycheck, a sudden emergency room visit could impact many families financially. And hospital visits aren’t that uncommon.1

Did you know that in 2018, there were 130 million emergency department visits? Out of those 130 million, 35 million of those visits were injury-related. And unfortunately, 16.2 million visits required hospital admission.2 Thankfully, there is a supplemental insurance plan that can help cover the costs of extended hospital stays: hospital indemnity insurance.

What Is a Hospital Indemnity Insurance Plan?

Hospital indemnity insurance is coverage you can add to your existing health insurance plan. This form of supplemental insurance pays you a predetermined benefitbenefitThe health care items or services covered under a health insurance plan.
Read more » amount per day for each hospital confinement. The insurance company usually pays this daily benefit amount for up to a year.

What Does a Hospital Indemnity Policy Cover?

The coverage your hospital indemnity insurance provides will depend on your plan selection. In general, most plans cover:

• Hospital confinement (with or without surgery)
• Intensive Care Unit (ICU) confinement
• Critical Care Unit (CCU) confinement

However, there are plans that cover even more. Some hospital indemnity coverage also includes :

• Outpatient surgery
• Continuous care
• Outpatient X-raysX-raysMedical x-rays are used to generate images of tissues and structures inside the body.
Read more » and laboratory procedures
• Outpatient diagnostic imaging procedures
• Ambulances
• Emergency rooms
• Physician office visits

How Much Does Hospital Indemnity Coverage Cost?

The monthly cost of a hospital indemnity plan will depend on your plan and company choice, as well as your age, gender, location, and possibly your deductibledeductibleThe amount you pay for covered health care services before your insurance pays.
Read more » amount.

Get a quote now and learn more about exact benefitsbenefitsThe health care items or services covered under a health insurance plan.
Read more » and coverage costs available in your area, at no cost to you.

Is Hospital Indemnity Insurance Worth Getting?

In 2019, the average inpatient hospital stay was $2,607, according to the Kaiser Family Foundation.3 With a comprehensive health insurance plan, you’re still responsible for copays and coinsurancecoinsurancePercentage of costs of a covered health care service you pay after your deductible.
Read more ». On top of that, you’re still required to pay your annual deductible before your plan will start covering the cost of your care. Can you predict how much you’ll owe without hospital indemnity insurance?

Are There Waiting Periods for Benefits?

Waiting periods vary by insurance company for hospital indemnity insurance. In general, there may be a 30-day waiting periodwaiting periodThe amount of time that a policy holder must wait before coverage can be used.
Read more » before your benefits can be used toward an illness that results in hospital confinement. However, there may not be a waiting period for accidental injuries that land you in the hospital. Make sure to ask your licensed insurance agent about waiting periodswaiting periodsThe amount of time that a policy holder must wait before coverage can be used.
Read more » before purchasing a hospital indemnity insurance policy.

How Does It Pay Out Benefits?

Like most supplemental insurance plans, hospital indemnity insurance pays direct cash benefits. This means the benefit amount you’ve chosen is sent directly to you instead of to your doctor or hospital.

Can You Add Dependents to a Hospital Indemnity Plan?

Yes, it’s possible to add your family members, including your dependent children and/or spouse, to some hospital indemnity plans. However, there may be an additional monthly premiumpremiumThe amount you pay for your health insurance every month.
Read more » per dependent.

Where Can You Get Hospital Confinement Indemnity Insurance?

You can apply for hospital indemnity insurance online with HealthMarkets. Choose a plan, determine a benefit amount that matches your household coverage needs, and find a premium amount that fits your budget.

Get started reviewing your options now. You can also call (844) 506-2142 to speak with a licensed insurance agent today.

1. “Hard times: 7 in 10 Americans say they’re living paycheck to paycheck now.” Study Finds. February 2022. Retrieved from https://www.studyfinds.org/living-paycheck-to-paycheck/ | 2. “Emergency Department Visits.” CDC.gov. Retrieved from https://www.cdc.gov/nchs/fastats/emergency-department.htm Accessed February 15, 2022. |3. “Hospital Adjusted Expenses per Inpatient Day.” KFF. Retrieved from https://www.kff.org/health-costs/state-indicator/expenses-per-inpatient-day/?currentTimeframe=0&sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D Accessed February 15, 2022.

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