Why Pairing Hospital Indemnity with Medicare Supplement Makes Sense

Cover even more gaps with Medicare Supplement and Hospital Indemnity in your insurance portfolio

Medicare Supplement insurance is a cost-share plan that may help you pay for expenses that Medicare does not cover. Also called Medigap — because it fills in the gaps of Medicare coverage — this type of insurance helps you cover potentially expensive medical out-of-pocket costs, like coinsurance, copayments, and deductibles. But when you pair it with Hospital Indemnity insurance, you can cover even more gaps.
It’s easy to overlook the additional costs you can incur while you’re hospitalized. A Hospital Indemnity insurance plan can provide you with supplemental cash benefits to use as needed, even for indirect non-medical costs.

What Does Hospital Indemnity Insurance Cover — And Other Questions Answered

What does Hospital Indemnity cover?

Hospital Indemnity differs from regular health insurance because it has no deductible, no coinsurance, and no network, and the benefit is paid out directly to you tax-free.
“Each person’s needs are going to be different. If a catastrophic event occurs, you might not be able to cover all the costs with your current income or savings,” explains Erin Bueltel, Medico’s product specialist. “If you’re on Medicare and are interested in additional insurance but don’t want to pay a high premium, a simple add-on of Hospital Indemnity at a lower premium might help provide relief.”

Fill Medicare and Medicare Advantage Gaps with Hospital Indemnity Riders

Medico’s Hospital Indemnity policy is available for people ages 40 to 85 and covers:

  • Hospital Confinement benefit: Pays an amount for each day in a hospital. You can choose the number of days per period of confinement (6, 7, 8, 9, 10, 21, or 31 days) and the amount per day (from $100-$600 in $25 increments).
  • Observation Unit benefit: Pays 100% of the inpatient benefit amount per day for up to 6 days per calendar year while receiving services in a hospital observation unit as a result of a covered loss due to sickness or injury.                                                                  
  • Emergency Room benefit: Pays $150 per day, up to 4 days per year, while receiving services in a hospital emergency room for a covered loss due to an accident or injury if admitted to a hospital within 24 hours.
  • Transportation and Lodging benefit: Pays $100 per day for up to 10 days per calendar year to cover expenses incurred for travel or lodging while receiving treatment in a hospital or medical facility located more than 50 miles from your residence.
  • Inpatient Mental Health benefit: Pays $175 per day of confinement in a hospital due to a covered mental or nervous disorder for up to 7 days per calendar year.

Hospital Indemnity Insurance Can Limit Medicare Observation Billing Effects

Depending on your personal circumstances and which state you live in, you may consider riders to cover even more gaps. At an additional cost, riders can be added to cover:

  • Ambulance services
  • Outpatient therapy and chiropractic services
  • Skilled nursing facilities
  • Outpatient surgery
  • Urgent care
  • Lump sums for hospital confinement or cancer treatment 

The benefits of pairing Hospital Indemnity and Medicare Supplement

Medico’s Hospital Indemnity insurance can offer protection in a variety of ways for Medicare Supplement policyholders:

  • Hospital Indemnity covers the deductible if you’re in a high-deductible plan.
  • The Lump Sum Cancer benefit rider can help cover indirect costs, such as experimental treatments, medicine, or job loss, even if you’ve had a cancer diagnosis within the past 10 years.
  • The Skilled Nursing Facility benefit rider can help cover direct or indirect costs due to your hospital stay.
  • The Outpatient Therapy/Chiropractic Services benefit rider can help cover indirect outpatient therapy costs after a hospitalization.
  • The Lump Sum Hospital Confinement benefit rider is a unique and helpful add-on. It pays $250, $500, or $750 for up to three benefit periods per calendar year when you’re confined to a hospital.
  • The Transportation and Lodging benefit can help pay for incurred costs for the policyholder and one legal adult accompanying you while you’re receiving care in a hospital or as an outpatient. 

To tailor a plan that best fits your needs, find a Medico agent in your area or call 877-257-2663.

Get a free Hospital Indemnity insurance quote

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.

1In Pennsylvania, "hospital confinement" is called, "hospital confinement indemnity insurance." In Arkansas, "hospital indemnity insurance" is called "hospital confinement insurance." In Colorado, "hospital indemnity insurance" is called "fixed indemnity insurance policy." In Utah, "hospital indemnity insurance" is called "hospital limited benefit indemnity insurance policy." In Virginia, "hospital indemnity insurance" is called "limited benefit hospital indemnity insurance policy." 
2Optional benefits are not available in all states. 
3In Iowa, this rider is called, "Nursing Facility Benefit Rider."
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


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