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What is Hospital Indemnity Insurance?

What is Hospital Indemnity Insurance?

Posted May 09, 2014 by Jenifer Dorsey

Have you ever been concerned about how much your major medical insurance plan benefits would cover should you be hospitalized or need to undergo surgery? In-patient hospital stays average $1,960 per day.1 Multiply this by the average hospital stay length of 4.8 days, and you have $9,408 worth of bills—at least.2

After meeting your plan’s deductible, you would be charged coinsurance (your share of covered costs) and also be responsible for any care not covered by your major medical insurance policy. These types of medical expenses can strain the finances of many American families, especially those without employer-based benefits that may include accident and disability insurance or paid time off work.
Hospital indemnity insurance plans, also referred to as hospital and surgical health insurance plans, can assist with hospital- and surgery-related medical bills. This coverage provides fixed payment amounts and lump-sum cash benefits for specific medical services and is intended to supplement major medical insurance.
Depending on the carrier and plan selected, benefits may include the following types of care:

  • Inpatient services
    • Inpatient hospital confinement – i.e., room and board, miscellaneous expenses and general nursing
    • Inpatient ICU/CCU confinement – i.e., room and board, miscellaneous expenses and general nursing
    • Accident benefit
    • Inpatient physician
  • Inpatient surgical services — Including benefits related to surgeon, assistant surgeon and anesthesiologist
  • Outpatient surgical services
    • Facility – i.e., services and supplies provided by the facility during the course of surgery, such as use of operating room, general nursing, casts, splints, and diagnostics such as radiology and pathology
    • Surgeon
    • Assistant surgeon
    • Anesthesiologist
  • Other covered services
    • Maternity benefit – lump sum upon hospitalization for delivery of a child; waiting period may apply
    • Second surgical option – payable for a second opinion prior to surgery
    • Chemotherapy and radiation
    • Ambulance – i.e., ground or water, air

Limitations and benefit amounts are dependent upon the hospital indemnity coverage you select.

Is a hospital indemnity plan right for you?
Hospital indemnity insurance can be helpful for those who want some extra financial protection should they become hospitalized or need surgery, including the self-employed and those without a job-based benefits package.

Hospital indemnity plans are considered supplemental health insurance. While some individuals and families without major medical insurance may use hospital indemnity insurance as a temporary solution, it is important to note that these plans are not Affordable Care Act–compliant and thereby do not count as qualified coverage.

Call a healthedeals.com health insurance agent at 888-839-7679 to ask questions and get help finding the right hospital indemnity plan.

Visit healthedeals.com to get a quick, free quote and read “Is a Hospital Indemnity Plan Right for You?

1 The Henry J. Kaiser Family Foundation. “Hospital Adjusted Expenses Per Inpatient Day.” n.d.
2 Centers for Disease Control and Prevention. “FASTSTATS—Hospital Utilization." Last modified April 28, 2014.

Jenifer Dorsey is a freelance writer whose specialties include health and fitness, wellness, sports and recreation. She is a competitive amateur track cyclist who also enjoys mountain biking, hiking, camping and other outdoor adventure. Jenifer received a B.A. in journalism from Columbia College Chicago and is an MFA candidate at Naropa University. She lives in Colorado.