Hospital indemnity insurance, also known as supplemental hospital insurance, or health benefit indemnities, is accident and sickness health insurance for individuals and families that offers affordable financial protection for common medical services. Unlike major medical insurance, when you experience a covered medical event, hospital indemnity insurance pays a set fee, directly to you or a provider designated by you. Our indemnity plans are designed to be used in connection with your major medical insurance to include additonal supplemental medical insurance coverage such as accident indemnity and critical illnesses, indemnity, as well as and can include supplemental non-insurance services such as telemedicine, insurance advocacy, and pharmacy discounts. Hospital indemnity insurance offers "first dollar coverage", which provides you more flexibility for managing expenses related to health care expenses, such as the copays required by your major medical insurance for your hospital visit, or even lost wages for the time you were hospitalized. Because the coverage is so specific and it pays cash indemnities, it’s often the cheapest medical insurance you can get.
How Do Health Benefits Plans Work?
Health benefit insurance plans work differently than many insurance plans you may be familiar with. Unlike major medical plans like those found on Affordable Care Act (Obamacare) exchanges or short-term health insurance, these health benefits plans offer defined dollar benefits that are paid without the enrollee first meeting a deductible or other out of pocket condition. In other words, health benefit insurance plans pay a set amount of money when the enrollee experiences covered medical events with the payment amount varying depending on the medical event.
Depending on the health insurance benefit plan, payments may be made directly to the enrollee to offset out of pocket expenses or lost income, or it may be paid directly to the enrollee’s health care provider.
Depending on the specific health benefit insurance plan, benefits may include:
Can Hospital Indemnity Insurance Add Protection for Your Family?
Hospital insurance plans can protect your family with hospital and doctor indemnity benefits. Some may include additional supplemental medical insurance to provide added protection from critical illnesses or accidents. Others may include services for individuals and families such as telemedicine to talk to an online doctor 24 hours a day, 7 days a week.
Hospital Indemnity Insurance vs STM/ACA Obamacare Insurance: What’s the difference ?
First Dollar Coverage
When you experience a covered sickness or accident requiring doctor or hospital services with hospital insurance, the insurance company makes a fixed cash payment to you or a designated provider. You decide how to spend or save the benefit. With major medical health insurance, the insurance company pays a percentage of your medical bills directly to the provider after you cover your deductible.
With STM and ACA policies you may have to pay thousands of dollars out of pocket before the plan pays anything. In 2018, the average deductible for an Obamacare Bronze Level plan is over $4,000.* Hospital Indemnity insurance can help you bridge that out of pocket gap.
Additional Coverage and Services
Indemnity plans can include supplemental medical insurance for accident or critical illnesses and non insurance services such as telemedicine or pharmacy discount plans to help you to better control your health spending.
Is Purchasing Hospital Indemnity Insurance Worth It?
5 Advantages of a hospital insurance plan:
- Payments for accidents and critical illnesses without a copay or deductible
- Low monthly premiums starting at $39.95/mo for a 30 year old.
- Coverage continuity even if you change your major medical insurance
- You are looking for the flexibility of direct-to-you benefit payments.
- You want to add an extra layer of insurance that supplements your major medical plan.
Join the smart shoppers who have decided to get a hospital insurance plan and protect yourself from the financial costs of an unexpected doctor or hospital visit.
* HealthPocket research report, “Aging Consumers without Subsidies Hit Hardest by 2017 Obamacare Premium & Deductible Spike.” 10/26/16 (https://www.healthpocket.com/healthcare-research/infostat/2017-obamacare-premiums-deductibles).