- What is hospital indemnity insurance?
- How does hospital indemnity insurance work?
- Is hospital indemnity insurance the same as traditional health insurance?
- Do certain health plans pair well with hospital indemnity insurance?
- What are some other benefits of hospital indemnity insurance?
- Is hospital indemnity insurance affordable?
- Is hospital indemnity insurance worth it?
Some trips to the hospital may be planned, but other hospital stays, like those for an illness or injury, may happen when you least expect it. Maybe you fall, hit your head and get rushed to the hospital. Or you get diagnosed with an illness that requires hospital care.
For those unexpected stays due to sickness or injury, hospital indemnity insurance — which you might also see called hospitalization insurance or hospital insurance — could come in handy. Here’s a guide to hospital indemnity insurance, and why it might be a fit for you.
Hospital stays can get expensive fast. Learn how hospital indemnity insurance can help. Start by entering your zip code to check availability in your area.
Hospital indemnity insurance is a type of supplemental insurance that provides a preset or “fixed” benefit if you’re hospitalized. For example, that could mean $1,000 a day, for a certain number of days you’re in the hospital.
Supplemental insurance means that you’ll pay extra for it, on top of your traditional health plan. It doesn’t replace your traditional health plan, but adds coverage to it. (There is a monthly premium for supplemental insurance that is not included in what you’d pay for your primary health insurance.)
This benefit could help cover out-of-pocket medical expenses like:
- Copayments, or fixed costs for covered health services
- Deductibles, or the amount you pay out of pocket for covered health services before your insurance company starts to pay
- Other noncovered expenses that may arise from hospital stays and services
You can even use the benefits to cover personal expenses (we’ll get to this in the next section).
Hospital indemnity insurance plans provide a lump-sum benefit. That could come in the form of a payment for a set number of days that you’re in the hospital.
As we noted in the previous section, you can use this money for medical expenses, like hospital bills, as well as personal expenses. These could include:
- Childcare
- Hotels or a temporary rental for relatives to be near you
- Rent or mortgage payments
- Transportation for loved ones to visit
Getting that benefit typically involves a 3-part process:
- You receive care for a qualified medical service.
- You, or your provider, submits a claim form and receipts.
- You — or your provider — receives the fixed benefit payment.
It’s worth noting that the benefit doesn’t have to go directly to you. It could go to a provider or hospital in some cases, if you have assigned benefits.
You might be wondering if hospital indemnity insurance works the same way as the traditional health plan you get through your employer, or an Affordable Care Act (ACA) plan. The answer is no. Here are a few reasons why:
- While you can buy a stand-alone hospital indemnity insurance plan, it isn’t a substitute for your traditional health insurance plan. You may also face medical underwriting to get covered. That means a health insurance company could review your medical records and deny you coverage for a preexisting condition. Even with a guaranteed issue plan — meaning there are no medical questions to answer — preexisting conditions are usually not covered for up to a year.
- On the plus side, unlike traditional health plans, you won’t have to meet a deductible or pay a copay to get your benefits. You receive a fixed benefit for a qualified service.
- Also, your benefits will be the same regardless of whether your provider is in-network or out-of-network. (Though, it’s worth noting that in-network providers may cost less than out-of-network providers.)
A lengthy hospital stay can put a strain on your family’s finances. Hospital indemnity insurance can help pay for groceries, childcare and more. Learn how.
Yes. One of the most common types of insurance plans that hospital indemnity insurance pairs best with is a High Deductible Health Plan (HDHP). That’s because an HDHP has a low monthly bill (premium) but a higher deductible than most traditional health plans.
Since you can use the lump-sum benefit to pay for deductibles and other out-of-pocket medical expenses, it could prove valuable if you’re hospitalized and have an HDHP. It also works well if most of the providers in your area are out-of-network.
Hospital indemnity insurance isn’t just about the financial support. It’s also helpful because you can add your spouse and children to the policy.
It could be. Several factors may affect the price. These include:
- Your age. As you get older, you have an increased chance of being in the hospital for a fall or an unexpected illness. Your premium may increase with age.
- Your health status. If you have increased health risks — you’re a lifelong smoker or aren’t at a healthy weight — this could increase your premium.
- The level of coverage you choose. Some insurance companies offer different combinations of coverage. The more coverage you get, the more expensive the policy could be.
- How many people are covered on your plan. Your monthly premium will increase if you add your spouse and/or children. In other words, the more people you add to your plan, the more it could cost.
Some hospital indemnity insurance plans may also be guaranteed issue. That means that you’ll get coverage regardless of your health status, age or other factors that might typically affect your eligibility and premium.
You’ll want to review the plan’s brochure closely before buying the plan.
It depends on the person. If you aren’t able to budget enough money to cover yourself for an unplanned hospital stay, hospital indemnity insurance could be for you.
If the financial support would be helpful — even with coverage from a traditional health plan — a supplemental plan, like hospital indemnity insurance, could be the answer. Learn more now, or call a licensed insurance agent at 1-844-211-7730 to discuss your options.
For informational purposes only. This information is compiled by UnitedHealthcare, and/or one of its affiliates, and does not diagnose problems or recommend specific treatment. Services and medical technologies referenced herein may not be covered under your plan. Please consult directly with your primary care physician if you need medical advice.
Compliance code:
51951-X-0225
