Hospital Indemnity Insurance

Updated: Jul 11, 2019

When you’re hospitalized, chances are there will be expenses that you have to pay yourself, even with an existing employer medical insurance plan, individual medical insurance, Medicare Supplement plan (plan N, High Deductible Plan F), or a Medicare Advantage plan. You have the obligation to pay a co-pay or deductible.


A Hospital Indemnity Insurance plan can help you pay your co-pay or deductible. It provides a cash benefit paid directly to you, which can help with your out-of-pocket expenses.


Benefits of a Hospital Indemnity Insurance Plan

► A hospital indemnity plan (HIP) is an affordable supplemental coverage plan.

► Benefits are yours to use how you wish.

No networks – benefits are the same regardless of network or provider.

► Plans available for ages 18-89.

► Provides a fixed daily cash benefit while you stay in the hospital, regardless of hospital fees.

► It’s possible to get coverage for the entire family.

► Hospitalization benefits are paid regardless of any other insurance you have.

► Coverage cost depends on your age and the coverage amount you choose. ► Cash benefits can be tax free.

► Approval is guaranteed for eligible members without a physical exam.


Example Scenario 1

Mike age 70 is hospitalized for 5 days due to a heart complication. His Medicare Advantage covers his medical and hospitalization expenses but he has a $250 a day co-pay whenever hospitalized ($250 x 5= $1,250). While Mike has the savings to cover the deductible, that’s a large chunk of money removed from his savings account. Luckily, he also has a health insurance indemnity policy that pays a cash benefit of $300 per day.

For the 5 days Mike is hospitalized, he will receive a total insurance indemnity benefit of $1,500. He can use this to pay himself back for the $1,250 co-pay. Additionally, he still has a $250 balance which he can use for other personal expenses.


Example Scenario 2

John age 20 is hospitalized with a concussion for 2 days after he hit his head after falling from his skateboard. John's parents have a medical insurance plan with a high deductible of $5,000. His parents have to pay the $5,000 deductible, luckily they have a Hospital Indemnity Insurance plan that covers the family. The policy pays a cash benefit of $1,000 per day (24 hrs), $200 for Emergency Room, and $500 for X-Rays at any hospital.


Total Benefit $2,000 ($1,000 x 2) + $200 + $500 = $2,700


Total Bill = $5,000 - $2,700 = lowered to $2,300


How Much Does Hospital Indemnity Insurance Cost?

Indemnity medical insurance costs depend on your age, the amount of coverage you want and the indemnity insurance company.


For people age 18 to 64, the price range might be $16 to $26 monthly. Family of 4, price range is around $82 a month.


People with Medicare, Medicare Supplement, or Medicare Advantage, the price range from $10 a month for a 65 year old up to age 89.



How to Buy Indemnity Coverage

You never know when you’ll get sick, but with an indemnity policy, you will have the confidence and peace of mind that you’re covered no matter what happens. While your health insurance takes care of medical expenses, your hospital indemnity insurance plan will take care of your living expenses. All you need to take care of is yourself.

The best way to compare quotes on hospital indemnity coverage and get the right amount of insurance for your needs is to work with an independent agent. While shopping for a hospital indemnity insurance plan, review your options and make sure you don’t overpay for the same amount of coverage that you could get somewhere else for a better price.


Contact us to receive a free Hospital Indemnity Plan quote.

Phone (915) 255-9077

Email info@armandowinsurance.com




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