Hospital Indemnity Insurance

A hospital stay can be traumatic — to your health, wallet, and family. Even if you have other medical insurance, some costs won’t be covered. That’s when a Hospital Indemnity insurance1 plan can provide you with supplemental cash benefits to use as needed.

If you’ve never heard of Hospital Indemnity insurance and how it can fill in your coverage gaps, stay with us. We’ll describe what it is, how it can help you if you’re hospitalized, what to look for when evaluating plans, and why Medico Insurance Company’s Hospital Indemnity cost-share plan stands out among its competitors.

What is Hospital Indemnity insurance?

Hospitalization is expensive on its own, but it’s easy to overlook the additional costs you can incur while you’re hospitalized. Deductibles and copays will start piling up, and you may require follow-up outpatient care or a stay in a nursing facility.

Hospital Indemnity insurance is an option that you can add to your overall health insurance portfolio. It pays you a specified amount for each day of covered service you receive, no matter what the final billed charges are.

What Does Hospital Indemnity Insurance Cover — And Other Questions Answered

Why you need Hospital Indemnity insurance

Hospital Indemnity insurance offers flexible supplemental coverage to major medical, Medicare, and Medicare Advantage plans. Since medical plans don’t cover every dollar of your hospital costs (such as deductibles, copays, etc.), you can work with your agent to select Hospital Indemnity plans that will pay out a specified, fixed-amount benefit for each day you’re in a hospital due to a covered sickness or injury.
Most often, Hospital Indemnity insurance allows you as the policyholder to choose a per-day cash benefit amount and a benefit period, which is the maximum amount of days the policy will pay. Generally, it doesn’t have a deductible or limited provider network, and benefits can be spent in whatever way you choose.
This ensures you’re not dipping into your savings account or retirement income to pay for your hospitalization. Depending on the coverage in your state, plans may pay ancillary costs, such as recovery care, ambulance transport, urgent care, chiropractic care, and travel and lodging expenses, if you require care at a hospital that is not close to where you live.

Fill Medicare and Medicare Advantage Gaps with Hospital Indemnity Riders

What to look for in a Hospital Indemnity insurance plan

First, understand which hospital expenses your health insurance, Medicare, Medicare Advantage, or Medicare Supplement benefits cover.
Secondly, establish what you can afford for an additional policy and determine the value it provides within the base cost. The base Hospital Indemnity benefit of most plans provides a certain dollar amount per day you are in the hospital that is picked by you, the policyholder. This generally ranges from $100 to $600 per day in $25 increments.4 For most plans, including Medico’s Hospital Indemnity insurance, you can add optional riders that provide additional benefits for outpatient services, such as outpatient surgery, physical therapy, and chiropractic care. Base benefits and optional coverage vary by state, so you should speak with an agent who can explain what is available in your area.
Finally, understand what is not included under the plan. Non-medically necessary hospital stays, such as cosmetic procedures, or injuries from engaging in high-risk behaviors, like skydiving, are usually not covered.

Why our plan stands out

Medico’s Hospital Indemnity insurance plan has no deductible, no required pre-certification, and no network of hospitals that you have to use. When you enroll, you choose the number of days and the cash benefit per day, which ranges from $100 to $600 in $25 increments,4 depending on what you select and what’s available in your state. The issue ages are 18–855, and your policy remains in force as long as your premiums are paid on time.
Some of our main benefits may include:

Optional benefits2 are available at an additional cost and may include:
  • Ambulance services
  • Outpatient surgery
  • Urgent care services
  • Outpatient therapy and chiropractic services
  • A lump sum for a cancer diagnosis
  • A lump sum for hospital confinement
  • Skilled nursing facility care3

In some states, you can receive a household discount on your premiums if you live with another adult, regardless of whether they sign up for coverage. Medico offers a 30-day satisfaction guarantee. If you’re not completely satisfied with your Hospital Indemnity insurance policy, you can cancel it within 30 days, and you will be refunded the premium amount, minus any claims paid (may vary by state).

To tailor a plan that best fits your needs, call our agents at 877-257-2663.

Get a free Hospital Indemnity insurance quote

Which states offer our Hospital Indemnity plans

Medico Insurance Company disclosures

This webpage is intended to provide a general description of the policy benefits. Policy provisions and benefits may vary from state to state. Please see the policy and riders for complete details. For costs and further details of the coverage, including exclusions, restrictions, or limitations and the terms under which the policy may be continued in force or discontinued, see your producer or contact Medico. Pre-existing conditions are not covered during the first six months after the policy date (may vary by state). To be eligible for benefits, you must receive medically necessary covered care, as defined in the policy.
This is a solicitation of insurance, and a licensed agent/producer may contact you. This is a limited policy. If there is a discrepancy between the webpage and the contract, the contract language prevails.
This policy is not major medical insurance and is not a substitute for major medical insurance. It does not qualify as minimum essential health coverage under the Federal Affordable Care Act. If you purchase this policy only, you will not satisfy the federal requirement that you have health coverage, which has been in effect since Jan. 1, 2014.
1This policy is called Hospital Confinement Insurance in AR, Fixed Indemnity Insurance Policy in CO, Hospital Confinement Indemnity Insurance in PA, Hospital Limited Benefit Indemnity Insurance Policy in UT, and Limited Benefit Hospital Indemnity Insurance Policy in VA. 
2Optional benefits are not available in all states. 
3This rider is called Nursing Facility Benefit Rider in IA and Nursing Facility Indemnity Benefit Rider in WA.

4In Arizona, the daily benefit amount you can select is from $100 to $600 per day in $25 increments. The maximum number of benefit days you can select from is 3, 6, 7, 8, 9, 10, 21, or 31 days.
5In Kansas and Montana, the issue ages are 50 to 85 years old. 

This content may contain links to third party websites, but Medico is neither responsible nor liable for their content, accuracy, or security. Review this website’s Terms and Conditions to learn more.

Photo credit: iStock

HIP-001 Rev. 07/22



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