Hospital Indemnity Insurance

A hospital stay can be traumatic — to your health, wallet, and family. Even if you have other medical insurance, some costs won’t be covered. That’s when a Hospital Indemnity insurance plan can provide peace of mind by offering customized protection that pays benefits in your time of need.

If you’ve never heard of hospital insurance and how it can fill in your coverage gaps, stay with us. We’ll describe what Hospital Indemnity insurance is, how it can help you if you’re hospitalized, and what to look for when evaluating plans.

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What is Hospital Indemnity?

Hospitalization is expensive on its own, but it’s easy to overlook the additional costs you can incur while you’re hospitalized. Deductibles and co-pays will start piling up, and you may require follow-up outpatient care or a stay in a nursing facility.

That’s where Hospital Indemnity insurance fills in the gaps in a way other insurance plans don’t. You receive your benefit directly, and you may use the payment however you want — from deductibles to travel and lodging expenses.

Why do I need Hospital Indemnity insurance?

Health insurance and Medicare cover some costs associated with a hospital stay, but not all of them.

Hospital insurance acts as a supplemental plan to your existing primary insurance coverage to ensure you’re not dipping into your savings account or retirement income to pay for your hospitalization.

Depending on the coverage in your state, plans may pay ancillary costs, such as recovery care, ambulance transport, urgent care, chiropractic care, and travel and lodging expenses, if you require care at a hospital that is not close to where you live.

What to look for in a Hospital Indemnity Insurance plan

First, understand which hospital expenses your health insurance, Medicare, Medicare Advantage, or Medicare Supplement benefits cover. We recommend talking to one of our local Arkansas licensed insurance agents to help you.

Secondly, establish what you can afford for an additional policy and determine the value it provides within the base cost. Most plans pay you a cash benefit for days on which you’re confined to a hospital. Upon enrollment, you choose the number of days the cash benefit should pay and the daily benefit amount. Then, you’ll need to examine what optional benefits are available at an additional cost. For example, some Hospital Indemnity insurance plans offer optional coverage for outpatient surgery, physical therapy, and chiropractic care. Base benefits and optional coverage vary by state, so you should speak with an agent who can explain what is available in your area.

Finally, understand what is not included under the plan. Non-medically necessary hospital stays, such as cosmetic procedures, or injuries from engaging in high-risk behaviors, like skydiving, are usually not covered.

Can you afford to be hospitalized?

18.7 million hospital stays annually are an average length of 5 days, costing about $14,500 per stay for people between the ages of 45 and 84.

Below are the percentages of adults in the U.S. who say their healthcare costs over the past two years caused a very or somewhat serious problem for their overall financial situation.

44% - Set up a payment plan with a hospital or healthcare professional.

42% - Spent all or most of their personal savings.

27% - Unable to pay for basic necessities, like housing, food or heat.

23% - Took on credit card debt that may be hard to pay back

7% - Declared bankruptcy

Household Discount

Receive a 7% discount on your premiums if you live with another adult, regardless of whether they sign up for coverage.

Base plan benefits

Hospital Confinement benefit

Pays for each day of confinement in a hospital. You can choose the number of day per period of confinement (6, 7, 8, 9, 10, 21, or 31 days) and the amount per day (from $100 - $600 in $25 increments). After you are released from being confined in a hospital and remain out of the hospital for 60 continuous days, your benefit period resets.

Observation Unit Benefit

Pays 100% of the Hospital Confinement benefit amount per day for a maximum of six 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 while receiving services in a hospital emergency room as a result of a covered loss due to an injury if admitted to a hospital within 24 hours. Maximum four days per calendar.

Transportation and Lodging benefit

Pays $100 per day for a maximum of 10 days per calendar year to cover expenses incurred for transportation or lodging while receiving treatment in a hospital or medical facility located more than 50 miles from the insured's residence.

Inpatient Mental Health benefit

Pays $175 per day of confinement in a hospital due to a covered mental or nervous disorder for a maximum of seven days per calendar year.

Policy highlights

Issue age

40 to 85

Underwriting

Simplified issue with limited health questions

Rates

Gender specific

Billing options

Monthly, quarterly, semi-annually, and annually

Optional rider benefits

Ambulance Services benefit rider

Pays $250 per day for ground or air transportation for a combined maximum of four days per calendar year. Subject to a lifetime maximum of $2,500.

Outpatient Therapy/Chiropractic Services benefit rider

Pays $50 per day with a choice of 15 or 30 days per calendar year for outpatient therapy services for charges incurred as a result of covered sickness or injury. Pays $50 per day for up to five days per calendar year for chiropractic services.

Skilled Nursing Facility benefit rider

Pays $100, $150, or $200 per day for up to 50 days when the insured is confined to a skilled nursing facility. Restoration of benefit is allowed once during the lifetime of this rider.

Lump Sum Cancer benefit rider

Pays $1,000; $2,500; $5,000; $7,500; or $10,000 with first diagnosis of internal cancer or malignant melanoma. Maximum of one payment. Coverage will terminate after payment of benefit. Only available up to age 80.

Lump Sum Hospital Confinement benefit rider

Pays $250, $500, or $750 for up to three benefit periods each calendar year when the insured is confined to a hospital.

Outpatient Surgery benefit rider

Pays $250, $500, $750, or $1,000 for up to two days each calendar year when insured has outpatient surgery.

Urgent Care Center benefit rider

Pays $50 per day for up to four days each calendar year when insured obtains urgent care services.