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Hospital Indemnity Plans and Hospital Indemnity Policies: Understanding the Difference

Hospital Indemnity Plans are insurance products designed to help individuals and families with the high costs of healthcare.   They cover some of the costs associated with a hospital stay and may provide extra coverage that your health plan won’t cover.  These plans provide a daily benefit for each day you are hospitalized; paid without regard to the hospital expenses incurred.

Hospital Indemnity Plans are generally considered to be a supplemental coverage, providing a set cash amount per day, such as $50, $200, $500 etc. payable directly to you.  For example, if you are hospitalized for 5 days and the daily benefit is $200, then you are eligible for $1,000.

While plans vary, generally the cash received may be used to help pay for out-of-pocket hospital-related expenses that include deductibles, co-pays, travel, transportation and hospital incidentals, such as parking.  Cash payouts may also be used for household expenses as a result of hospitalization, outpatient surgery, or post-hospital skilled nursing facility stays.

Because it’d be difficult to cover all your hospital expenses with a $100 or even a $200 per day indemnity plan, you may also need supplemental benefits—reimbursement for deductibles and coinsurance payments—which may be covered under a Hospital Indemnity Policy.

Hospital Indemnity Policies are frequently available directly from insurance companies.  These policies offer many options on benefits and terms, so make certain to ask questions to find the correct policy to meet your needs.  If you purchase a Hospital Indemnity Policy, review it frequently to determine if you need to increase your daily benefits to keep pace with rising health care costs.

If you have any questions on whether a Hospital Indemnity Plan or Hospital Indemnity Policy would be right for you, please contact us at MedicareSolutions where a licensed Medicare sales representative can explore with you options that would best fit your needs.  Call us today at 1-800-328-7305!

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