How Hospital Indemnity insurance helps before, during, and after hospital stays

Riders make the most of your Hospital Indemnity insurance to help you cover costs for your hospitalization

If you’re concerned about rising health care costs and how you would financially deal with a serious medical event, you can protect your finances and find peace of mind with Hospital Indemnity insurance.1

According to the American Hospital Association Annual Survey, more than 33.3 million Americans were admitted to hospitals in 2020. The average cost of an inpatient hospital stay is $11,700 with Medicare.

Since major medical, Medicare, and Medicare Advantage plans don’t cover every dollar, an extensive hospital stay can result in hefty out-of-pocket costs. But Hospital Indemnity insurance can ease the burden by providing a cash benefit for each day you’re confined to a hospital or require outpatient services, depending on the coverage options. You choose the number of days per period of confinement and the amount per day. 

There’s no deductible or network. Benefits can be spent in whatever way you choose, even for services that are not directly related to hospitalization, such as copays or household expenses. Hospital Indemnity insurance is especially helpful if you have a high-deductible plan, like some Medicare Advantage plans.

How Hospital Indemnity insurance fills Medicare Advantage gaps

Riders can help you get the most out of your Hospital Indemnity insurance, and they typically cover one of four service categories: 

1. Before hospitalization

Medico’s Hospital Indemnity base plan includes an Emergency Room benefit, but the optional Ambulance Services benefit rider helps cover ground or air transportation to the hospital. The Urgent Care Center benefit rider pays $50 per day for up to four days each calendar year when you obtain urgent care services.

2. During inpatient hospitalization

Medico’s Hospital Indemnity plan includes the Hospital Confinement benefit that pays a specified amount for each day you’re confined to a hospital and an Inpatient Mental Health benefit for confinement in a hospital due to a covered mental or nervous disorder. It also pays a Transportation and Lodging benefit to help with travel costs while you receive treatment at a hospital that is not near your home. The optional2 Lump Sum Hospital Confinement benefit rider can be added to the policy to help cover extra costs. 

The additional Lump Sum Cancer benefit rider can help you cover indirect costs related to most cancer-related treatments, like experimental trials, medicine, or even job loss.

3. During outpatient hospitalization

Medico’s Hospital Indemnity plan offers an optional Outpatient Surgery benefit rider, but it includes an Observation Unit benefit as part of its base plan. The latter comes in handy if you’re placed under observation when you’re expected to need less than two nights of medically necessary care. This can become complicated financially, as Medicare recognizes observation care as an outpatient service and pays benefits differently than for inpatient services. 

4. After hospitalization

After hospitalization, it’s common for additional services to be necessary before you can safely return home. And the costs for these services can add up fast. With Medico’s optional Skilled Nursing Facility and Outpatient Therapy/Chiropractic Services benefit riders, these costs can be minimized.

All it takes is one hospital stay, and you’ll be thankful you realized the value of having Hospital Indemnity insurance. 

To learn how Medico’s Hospital Indemnity insurance plan can help fill your coverage gaps and if it’s available in your state, visit the Hospital Indemnity page. You may also request a personalized, free quote, or call 877-257-2663 to speak with an agent.

Find an agent in your state

Medico Insurance Company disclosures
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. The policyholder has 30 days after receiving the policy to examine it and return it to Medico or to the producer if they are dissatisfied. Medico will refund the premium, less any claims paid, and void the policy (may vary by state). This webpage is intended to provide a general description of the policy benefits. 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.
1. This 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.

2. Optional benefit riders may not be available in all states and benefits may vary by state. The rider names may vary by state.

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

Photo credit: iStock



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