Hospital Indemnity Plans: A Smart Way to Cover Medicare Advantage Gaps
Even with health insurance, you might still have to pay a lot if you go to the hospital. Thatâs right! A hospital stay can be costly. But donât worryâthereâs a helpful kind of insurance called hospital indemnity insurance that can protect you from big medical bills. Letâs learn all about it!
What Is a Hospital Indemnity Plan?
A hospital indemnity is a special kind of insurance that gives you money if you have to go to the hospital. It helps pay for things that your regular insurance might not cover.
Hereâs how it works:
- You pay a small amount of money each month, which is called a premium.
- If you go to the hospital, the insurance company sends money straight to you.
- You can use the money for medical bills, food, gas, or childcare!
Itâs like having a money backup in case you get sick or hurt and need to stay in the hospital.
Why Do People Need This Type of Insurance?
Even with health insurance, many people still have to pay deductibles, co-pays, and coinsurance. These are all extra costs that add up fast.
For example:
- A 3-day hospital stay can cost around $30,000!
- Many people canât pay that much out of pocket.
- Some people even go into debt because of hospital bills.
Hospital insurance gives you peace of mind by helping cover these surprise expenses.
What Does Hospital Indemnity Insurance Cover?
This kind of plan pays you money when something serious happens, such as:
- A stay in the hospital
- Time in the emergency room
- Treatment in the intensive care unit (ICU)
- Outpatient surgeries
- Ambulance rides
It can also sometimes help with:
- Rehab care
- Home care
- Medicines
- Even everyday things like groceries while you recover
The best part? There are no deductibles and no networks to worry about!
What Doesnât It Cover?
Hospitalization insurance doesn’t replace regular health insurance. It doesnât pay for:
- Normal doctor visits
- Routine tests or checkups
- Medicines from your pharmacy (unless youâre in the hospital)
You still need to maintain your regular health insurance. Think of indemnity insurance as a helperâit supports your main plan.
Who Should Think About Getting This Plan?
You might want to think about getting this plan if:
- If you have a chronic condition like diabetes or heart disease
- Youâre having surgery soon
- Youâre pregnant or planning to have a baby
- You have a high-deductible insurance plan
- You worry about out-of-network charges
- You want extra protection just in case
If any of these sound like you, this insurance could be a smart move!
How Much Does It Cost?
Good news! These plans are usually very affordable.
- Some plans cost as little as $10 a month
- If you get it through your job, it could be even cheaperâjust $2 to $5 a month
- The price depends on your age, where you live, and how much coverage you want
And remember, the more daily benefits you choose (like $100 or $200 per hospital day), the higher your monthly cost will be.
Things to Think About Before You Buy
Before getting an indemnity health insurance, ask these questions:
1. How long will the plan cover me?
Some plans cover:
- 1 to 30 days in the hospital
- Two hospital stays per year
2. How quickly will I get paid?
Some plans pay right away; others might take a few days.
3. Does the plan cover my family?
Many plans let you add your spouse or kids too.
4. Are there age limits?
Most plans are for people between the ages of 18 and 65. Premiums may go up as you get older.
Where Can I Get Hospital Indemnity Insurance?
You can buy these plans from insurance companies like:
- UnitedHealthcare
- Cigna
- Colonial Life
- Anthem
You can also check with your employerâmany jobs offer this as part of their benefits.
If you’re unsure where to start, an insurance expert can help you find the right plan for you and your family.
How Hospital Indemnity Plans Work with Medicare Advantage
If you have a Medicare Advantage plan, you might think all your hospital costs are covered. But these plans often leave you with out-of-pocket expenses like daily hospital co-pays, ambulance fees, and skilled nursing facility costs.
Think of it like a safety net. When youâre admitted to the hospital, your indemnity health plan pays cash directly to you. You can use this money for anything â to pay your co-pays, buy medicine, cover travel costs, or even help with bills at home. This gives you more control and peace of mind.
For example, if your Medicare Advantage plan charges you $300 daily in the hospital for the first five days, that could cost you up to $1,500. But if your hospital plan pays you $300 per day, that money can help cover your costs so you donât have to dip into your savings.
It doesn’t replace your Medicare Advantage coverage. Instead, they work with it to help fill the gaps and protect your wallet.
Is Hospital Indemnity Insurance Worth It?
Yes! It can be beneficial. Hereâs why:
- It gives you money when youâre in the hospital.
- It helps you avoid medical debt.
- It covers things your leading health insurance might not.
- It gives you peace of mind.
If you have Medicare Advantage, indemnity insurance can help cover the gaps in your planâthings like co-pays, extra services, and more. Thatâs why many people call it a smart way to stay protected.
Final Thoughts
No one plans to get sick or end up in the hospital. But if it happens, youâll want to be ready. Hospital indemnity insurance is an innovative, simple way to protect your wallet and well-being.
LMS Insurance Group is here to help! We donât believe in one-size-fits-all answers. Weâll sit down with you, look at your needs, and explain your optionsâclearly and kindly.
Want to learn more about hospital indemnity plans and how they can help protect your savings? Call us today and speak to a real Medicare expert who cares. Because at LMS, youâre never just a numberâyouâre family.
