Hospital indemnity insurance
Hospital stays are expensive and, in most cases, unavoidable. The average hospital stay costs more than $10,700* — a portion of which typically falls to the patient by way of deductibles, copays and coinsurance. In addition, patients can face collateral expenses such as additional housing and transportation expenses for family members and lost wages.
Most Medicare coverage does not cover all expenses related to a hospital stay and subsequent course of treatment. The plans pays you benefits when you are confined to a hospital, whether for planned or unplanned reasons. Benefits in a Hospital Indemnity plan are à la carte. This allows the policyholders to choose exactly what is needed to fill in the gaps of their medical plans.
Hospital indemnity policies have no provider networks, and policy payments are made directly to the insured. Patients are then free to the use the money as they wish — for out-of-pocket expenses not covered by their Medicare plan and directly related to the hospital stay, or for ancillary expenses incurred because of the stay.
Popular Plans & Examples:
Premiums typically range from $30 -$50 a month.
Here are some benefit and premium samples for a 65 yr old male:
Low Plan:
Daily Hospital of $250 per day, up to 5 days
Daily Skilled Nursing of $150 per day, days 21 to 80
Premium for 65 to 69 yr old: $34.65 per month
Med Plan:
Daily Hospital of $300 per day, up to 5 days
Daily Skilled Nursing of $150 per day, days 21 to 80
Outpatient Procedure of $250
Outpatient Rehabilitation/ Physical Therapy of $50 per visit, up to 15 visits
Premium for 65 to 69 yr old: $54.32 per month
High Plan:
Hospital Admission of $1000
Daily Hospital of $300 per day, up to 5 days
Daily Skilled Nursing of $150 per day, days 21 to 80
Outpatient Procedure of $250
Outpatient Rehabilitation/ Physical Therapy of $50 per visit, up to 15 visits
Lump Sum Cancer Benefit of $10,000
Premium for 65 to 69 yr old: $119.49 per month
Premiums for hospital indemnity insurance vary depending on the age of the insured, services covered and length of hospital stays covered, and whether dependents are included on the plan. As with most insurance — the higher the coverage the higher the premiums. Such policies may present a better option for many retirees on a fixed income who can not afford the large expense associated with just a single hospital stay.
DISCLAIMER: This information is not a complete description of benefits. Contact the plan for more information. Available issuing companies will vary by state.
