Medicare Advantage plans are great because you can get as low as a $0 planned premium. However as your Agenct explained you have copays including a hospital inpatient copay with your Medicare Advantage plan. A Hospital Indemnity plan is an affordable solution to help with hospital copays.
In other words, a Hospital Indemnity Plan (HIP) is a type of insurance designed to pay you benefits if you are confined to a hospital whether it is for planned or unplanned reasons. These benefits are paid directly to you.
Do you have a Medicare Advantage plan where you have an inpatient hospital stay copay that requires you to pay the copay for each day you are there? (ex : $195 days 1-9)? If so a HIP is a great plan that will help you cover the hospital copay you may encounter. This plan allows you to specifically select the amount best suited for you. Essentially it wraps around your Medicare Advantage plan to alleviate some financial stress and helps pay your inpatient hospital copay.
If you are in the hospital for as little as 12-24 hours, this plan will begin providing coverage to you. Depending on the carrier, it could also cover observation stays as well as hospital admittance.
Bottom line, it provides a cash benefit directly to you and can be used to help pay for out of pocket expenses that you are obligated to pay with your health insurance.