What is hospital indemnity insurance?

Also known as hospital insurance or hospitalization insurance, this type of indemnity plan typically provides a “fixed” or set benefit amount for costs you may incur when you are hospitalized due to an injury or condition covered by your policy.

Hospital insurance is not available in every state. In some states, you are required to have an Affordable Care Act (ACA)-compliant major medical plan before you can enroll in a hospital insurance plan.[1]