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 peace of mind by offering customized protection that pays benefits in your time of need. If you’ve never heard of hospital insurance and how it can fill in your coverage gaps, stay with us. We’ll describe what Hospital Indemnity insurance 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 insurance plan stands out among its competitors.
What Hospital Indemnity insurance is
Hospitalization is expensive on its own, but it’s easy to overlook the additional costs you can incur while you’re hospitalized. Deductibles and co-pays will start piling up, and you may require follow-up outpatient care or a stay in a nursing facility. That’s where Hospital Indemnity insurance fills in the gaps in a way other insurance plans don’t. You receive your benefit directly, and you may use the payment however you want — from deductibles to travel and lodging expenses.
Why you need Hospital Indemnity insurance
Health insurance and Medicare cover some costs associated with a hospital stay, but not all of them.
“You need Hospital Indemnity insurance to help pay for the high out-of-pocket expenses associated with other plans, especially the co-pays for a hospital stay,” says Carrie Haubensak, sales director of Medico.
In other words, hospital insurance acts as a supplemental plan to your existing primary insurance coverage to ensure 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.
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. Haubensak recommends talking to a licensed insurance agent who is familiar with your individual policy.
Secondly, establish what you can afford for an additional policy and determine the value it provides within the base cost. Most plans pay you a cash benefit for days on which you’re confined to a hospital. Upon enrollment, you choose the number of days the cash benefit should pay and the daily benefit amount. Then, you’ll need to examine what optional benefits are available at an additional cost. For example, some Hospital Indemnity insurance plans offer optional coverage for 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, depending on what you select and what’s available in your state.
Some of our main benefits may include:
- Inpatient mental health services
- Observation unit monitoring
- Emergency room services
Optional benefits2 are available at an additional cost and may include:
- Ambulance services
- A lump sum for a cancer diagnosis
- Skilled nursing facility care3
Your policy remains in force as long as your premiums are paid on time, and 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. To tailor a plan that best fits your needs, call our agents at (800) 547-2401, Option 3.
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 January 1, 2014.
1In Pennsylvania, "hospital confinement" is called, "hospital confinement indemnity insurance." In Arkansas, "hospital indemnity insurance" is called "hospital confinement insurance."
2Optional benefits are not available in all states.
3In Iowa, this rider is called, "Nursing Facility Benefit Rider."
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Photo credit: iStock/Johnny Greig