Is Hospital Indemnity Insurance Right For You?

June 6, 2024

Spending time in the hospital is bad enough. Add in the bills that follow and it is like pouring salt in your wound.

Even with health insurance, your out-of-pocket expenses can be excessive, but the cost of a hospital stay could be reduced with a hospital indemnity insurance plan.

Hospital indemnity or hospitalization insurance will pay you benefits when you have a hospital stay. Depending on the policy, other medical services may also be covered.

Why do I need hospital indemnity insurance?

  • Health insurance might not cover all your hospital bills. If you have a high deductible, you may end up being responsible for a day or more of your hospital stay, which can cost thousands of dollars.
  • Life is unpredictable. Sometimes unexpected illnesses strike or an injury happens. Many Americans are financially unprepared for emergencies.
  • Hospital indemnity plans often include critical illness insurance. Critical illness coverage will help with your costs associated with cancer, heart attack or stroke. You’ll receive a lump sum payment that can be used for anything from child care to moving expenses or transportation.

What are the benefits of a hospital indemnity policy?

Each individual policy will vary, but hospital indemnity insurance typically pays for hospital stays, time spent in intensive care or the critical care unit.

Some plans will cover outpatient surgery, continuous care, outpatient X-rays, lab work and imaging, ambulances, emergency rooms and doctor’s office visits.

Is there a waiting period?

While there are variances according to the policy, in general, you’ll have a waiting period to meet before you can use your benefits.

How much does it cost?

Many factors go into determining how much you’ll pay for hospital indemnity insurance. Your choice of plan, age, gender and even tobacco use may be considered.

How are the benefits paid out?

Hospital indemnity plans pay in cash benefits, which means the amount you are owed is sent directly to you, not to the hospital or doctor.

Can you add dependents?

Some plans allow adding dependent children at a higher premium.

Is there an enrollment period?

No. You can enroll in a hospital indemnity plan at any point during the year because it’s not part of the Affordable Care Act.

UROne Benefits™ can help you find the right coverage at the right price. Contact us here or at 800-722-7331 to explore your options for hospital indemnity insurance or any other coverage to suit your needs.

This post was originally published in June 2018; updated June 2024.