What is a Hospital Indemnity plan?

Hospital Indemnity insurance is a supplemental plan that pays cash benefits directly to you if you're hospitalized or receive certain medical services. You can use the money however you want — to cover medical bills, transportation, or household expenses while you recover.

These plans are designed to fill the gaps left by Medicare Advantage or other health coverage, which often include daily hospital copays and other out-of-pocket costs.

How does Hospital Indemnity work?

If you're admitted to the hospital, your plan pays you a set cash amount per day, such as $100, $200, or more, depending on your coverage. Some plans also pay for:

  • Ambulance transportation
  • Outpatient surgeries
  • Skilled nursing stays
  • Observation stays
  • Emergency room visits

You receive the cash directly — not the hospital — so you decide how to use it.

Why is Hospital Indemnity important?

Even with a $0 premium Medicare Advantage plan, you can still face:

  • Daily hospital copays of $300–$400 per day
  • Observation stays that don't count as inpatient
  • High ambulance or ER copays

Hospital Indemnity coverage helps you turn those unpredictable costs into predictable protection.

How much does it cost?

Premiums are usually low — often between $20–$40 per month, depending on age and benefit amount. Because the plan pays fixed cash benefits, there are no networks, referrals, or deductibles.

Protecting Your Budget from the Unexpected

No one plans for a hospital stay, but even a short visit can mean hundreds in daily copays. Hospital Indemnity coverage turns those potential surprises into peace of mind — a simple monthly cost for guaranteed cash when you need it most.

We explain how it works (and how to pair it with your Medicare Advantage plan) in the Medicare Made Easy Webinar.

In under an hour, you'll see:

How Hospital Indemnity fills the gaps in Advantage plans

Real examples of how much it can save you during a hospital stay

The easiest way to bundle this protection into your coverage

👉 Watch the Medicare Made Easy Webinar

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