A Hospital Indemnity plan is an affordable solution to help cover the out of pocket costs that your health insurance coverage may leave you with in the event that you are admitted to the hospital as an inpatient or under observation.
How Does A Hospital Indemnity Health Insurance Plan Work?
A hospital indemnity is a great plan that wraps around your health insurance. This insurance is not a substitute for your health insurance. Benefits are paid directly to you so you can use the money anyway you choose.
A hospital indemnity plan will pay a daily benefit amount to you should you be confined to the hospital. You choose the daily benefit amount that works best for your needs. For example, if you have a plan that has a $250 daily benefit for a 10 day benefit period, if you are confined to a hospital for 4 days then this plan will pay you $1000.
Another great feature of the hospital indemnity plan is that if you have exhausted your benefits, they will fully restore for an unlimited amount of times after 6 months of no hospital confinement or a new unrelated condition.
The indemnity plan has several riders that you may choose. One rider is the outpatient surgical benefit, which will pay a lump sum amount for a surgical procedure performed at either an outpatient hospital facility or ambulatory surgical center. Another rider is the ambulance rider that will provide the selected benefit amount for an ambulance ride to a hospital.