Who can benefit from a hospital indemnity plan? Both Medicare enrollees and those not yet Medicare eligible who have high-deductible plans either by choice or availability.
What is hospital indemnity insurance? Hospital indemnity insurance is supplemental insurance that provides a cash benefit to the policyholder. It is purchased in addition to traditional health insurance―not in place of it. Premiums are paid for the policy, and the policy pays a fixed benefit when a claim is filed. In most cases, the bill must be paid, and the claimant files for reimbursement.
Why purchase hospital indemnity insurance? Within the world of Medicare, these plans can be effective with Medicare Advantage plans. Typically, advantage plans have a hospital stay co-pay ranging from $250-$450 per day for the first seven days in the hospital. Other co-pays may include ambulance transport, outpatient surgery, and various therapies―physical/speech/occupational. Some companies offer other riders (optional add-ons that modify or expand coverage, often at an additional cost), like cancer coverage or a rider that offers a per diem while in skilled nursing (rehab). Hospital indemnity insurance won’t help you with regular doctor visits and tests.
Who can buy it? Many hospital indemnity plans offer guaranteed acceptance (no underwriting), and issue ages from 18-85. Once you have been accepted, and as long as you pay premiums, the policy will remain in place with no change in premiums until the policyholder passes away.
How much does it cost? Premiums range from $30-$100 per month, depending on your age at the time of enrollment and design. You can personalize the plan to meet your needs with the riders that are most important to you.
What are the drawbacks? It is not a substitute for traditional healthcare. Because it is a fixed cash payout, if, for example, the copay for hospitals stays on your advantage plan has increased since you purchased the policy, you will only receive the amount you originally elected. Some providers are not as efficient at providing the claim form information―i.e., dates of service with service codes. Claimants must adhere to the time frame from the date of service to filing a claim.
Overall, hospital indemnity plans are worth taking the time to learn about what is available and how it may fit your financial needs.
Learn more about Medicare at an upcoming free seminar:
- Tuesday, July 7th 10:00 a.m. Lumes Pancake House 1902 W. Fabyan Parkway Batavia
- Wednesday, July 15th 6:00 p.m. Town & Country Public Library 320 E. North St. Elburn
- Saturday, July 18th 10:00 a.m. Sycamore Public Library 103 E. State St. Sycamore
- Tuesday, July 21st 6:00 p.m. Sycamore Public Library 103 E. State St. Sycamore
- Thursday, July 23rd 6:00 p.m. Batavia Public Library 10S. Batavia Ave.
RSVP Today! Limited seating. Call or text 630-286-9160.
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