Hospital Indemnity Insurance

Typically coverage is not limited to a network of doctors and hospitals. This also means that the plan benefits are paid at a fixed amount, so your insurer has not negotiated any limits on what you are charged for in-patient services.^[1]

If you are hospitalized, your policy pays a set benefit amount for eligible services regardless of how much your provider charges for the services.^[2] The amount paid is per day, per week, per month, per visit or per event, as outlined in the policy you select. Here’s an example of how hospital indemnity insurance works: The hospitalization insurance plan you selected pays $250 per day for hospital room and board charges, and $100 per day for inpatient doctor visits. If you are hospitalized for three days due to an injury or medical condition covered under your plan and you are visited each of those days by a doctor in the hospital, you will receive $1,050 in benefits. Be sure to carefully review your policy for more specific details about what benefits will be paid for eligible hospitalization charges you incur.

You may choose to receive your benefit payments directly,^[3] or you may ask your insurer to pay the benefit amount to your provider. Hospital indemnity benefits typically do not coordinate with any other health insurance coverage you may have, like major medical. That means that no matter what your major medical policy pays for a covered illness, injury or healthcare service, the hospital plan will pay its fixed indemnity benefit as indicated in your policy.