Hospital Indemnity Insurance


Hospital indemnity plans can help you pay for the out-of-pocket costs of your hospital stay. These plans will reimburse you for specific covered medical expenses, such as your hospital stay for emergencies or outpatient services. You can also receive coverage for additional expenses such as for lodging, transportation, meals, child care and more. Add a hospital indemnity to your health insurance arsenal for added protection against the costs of the healthcare system.

Hospital Indemnity Insurance

Hospital indemnity is a fixed benefit health insurance supplement policy. It provides a fixed cash benefit for covered medical expenses. These covered services can include hospital stays for emergencies and outpatient services. 

Hospital Indemnity Supplement

Hospital indemnity plans are best used as a type of supplemental plan in addition to your primary health insurance plan. These plans are not intended to give you full coverage for expenses, which is why you still carry your primary insurance. These indemnity plans cover specific hospital expenses, while your primary coverage pays for outpatient doctor and emergency visits as well. 

Think of the hospital indemnity plan like a Medicare Supplement plan. The first item covered by all Medicare supplement plans is Part A hospital costs and coinsurance. Hospital indemnity serves the same purpose, reimbursing you for the out-of-pocket costs that the hospital charges you for your hospital stay. 

Hospital Indemnity Coverage

Hospital indemnity can provide coverage for unexpected child-care expenses, transportation expenses, lodging and meal costs, deductibles and coinsurance amounts. Coverage begins on the first day of your hospital start. Your covered hospital stays are payable for up to a year for the same or related condition. The hospital indemnity plan will pay your reimbursement directly to you instead of through the hospital.

The hospital indemnity plan will pay a fixed amount for covered services. That means if the charge is more than the reimbursement, you will still be responsible for the full amount. If the charge is lower than the reimbursement amount, you will get to keep the remainder.

Planning for Hospital Costs

Hospital costs can be expensive. You want to prepare for the out-of-pocket damage to your budget by planning ahead. A supplemental policy like hospital indemnity can protect you from the costs of your hospital stay. Depending on your plan, you may be able to receive coverage for different specific expenses related to your hospital stay, such as for blood used in procedures.

Choosing a Hospital Indemnity Plan

Hospital indemnity plans can be valuable supplemental policies to help you pay for the numerous expenses related to hospital stays. While your primary health insurance will have coverage for hospital stays, the fixed benefit from your hospital indemnity plan can help you pay for the deductible and out-of-pocket expenses to cover the full cost of the medical event.

Your policy may vary from the coverage listed above. Check with your plan for details about the coverage you may be provided in the event of an unexpected hospital stay.

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