HOSPITAL INDEMNITY PLANS

WHAT IS A HOSPITAL INDEMNITY PLAN?

A hospital indemnity policy is coverage you can add to your existing major medical plan that provides specified fixed-dollar-amount benefits for covered hospital services and durations, regardless of the actual cost of the service. HIP policies are “standalone,” which means they do not coordinate with your other health insurance coverage. In some states, you must already have a major medical policy in order to obtain supplemental coverage.
Some hospital indemnity plans cover additional services such as ambulance trips, second surgical opinions, and even chemotherapy and radiation. Optional health maintenance and diagnostic testing benefits that pay a fixed amount for preventive care, X-rays, urgent care and other services may also be available with some plans. The options and benefits available to you and premium will vary by plan.

DO I NEED A HOSPITAL INDEMNITY PLAN?

Even if you have other medical insurance, there will almost certainly be costs that aren't covered, such as high deductibles, copays and cost shares.  A hospital indemnity plan will provide you with supplemental cash benefits you can use however you want.  If you do not have the financial reserves to pay for your hospital deductible or the copays associated with a hospitalization (such as amubulance, outpatient surgeries, therapy or skilled nursing services), an indemnity plan may be for you.  For an additional premium you can budget, an indemnity plan will enhance your existing coverage.