Healthcare has a number of moving parts: preventive care, urgent care, mental healthcare, physical therapy, rehabilitative services, emergency care, prescription drugs and everything in between. And while your Affordable Care Act (also referred to as “Obamacare”) health insurance plan includes benefits that help pay for such healthcare, you will still be responsible for some share of these expenses out of pocket.
Hospital indemnity plans pay a predetermined amount in the form of lump-sum cash benefits for specific services and care. It is important to note that hospital indemnity does not cover catastrophic care and is not intended to be a replacement for ACA-compliant major medical insurance.
What is a hospital indemnity plan?
Considered a supplemental insurance product, hospital indemnity plans provide first-dollar fixed benefits for medical expenses related to hospitalization, surgery and outpatient therapy services.
That means the plan pays up to the stated benefit amount for a service without any additional copay, coinsurance or deductible; however, it is important to note that first-dollar benefits only kick in after the hospital indemnity deductible, if there is one, has been met.
You can also get hospital indemnity benefits through other types of supplemental coverage, including medical gap insurance plans.
What do hospital indemnity benefits cover?
Hospital indemnity benefits cover certain hospital and surgical services and pay a fixed amount based on the coverage level you select.
Benefits may include:
- Inpatient services (paid per day) such as:
- Inpatient hospital confinement
- Accident benefits
- Inpatient physician visits
- Inpatient ICU/CCU confinement
- Inpatient surgical services (paid per surgery)
- Outpatient surgical services (paid per surgery)
- Maternity (lump sum benefit)
- Ambulance (per trip)
- Chemotherapy and radiation (per treatment up to a lifetime maximum)
- Per injury or illness deductible
- Critical illness benefit
Again, hospital indemnity plans and other supplemental plans that include hospital indemnity benefits are not major medical insurance and do not include Obamacare essential health benefits. This type of coverage is not subject to provisions under the Affordable Care Act.
Who is this type of coverage ideal for?
Securing a supplemental health insurance plan with hospital indemnity benefits is another way to reduce medical bills and pick up where your medical insurance leaves off. If you anticipate needing hospital or surgical services, this type of plan can provide some financial relief.
Discuss your healthcare needs and the amount you can afford to pay for insurance with a health insurance agent to help you arrive at the best solution for your circumstances.
Are hospital indemnity plans still relevant in the age of Obamacare?
Absolutely. They offer additional financial protection on top of your Obamacare coverage. Once you gather monthly premium quotes and have considered how you might use your health insurance in the upcoming year, consider the benefits included, the deductible you might select and any anticipated out-of-pocket costs.
A hospital indemnity plan may help you save more in the event you need hospital and surgical services.
To learn more about the hospital plans, call 866-278-1464 to speak with a licensed agent.
Or, find out how much a hospital plan may cost you by requesting a quote (it just takes a minute to complete the online form and view plans available in your area).