Hospital Indemnity & Care Plans to Offset Out-of-Pocket Costs
Hospital stays are stressful enough—unexpected bills shouldn’t be part of the recovery. If you have Medicare Advantage, or even Original Medicare, a single admission could leave you with significant daily copays or deductibles.
That’s where
hospital indemnity insurance comes in. These plans pay you a set cash amount per day or per admission to help offset out-of-pocket expenses. Many in Oregon and Washington use them to
fill the gaps Medicare leaves behind.
Protect Yourself From the High Cost of Hospitalization
What Is a Hospital Indemnity Plan?
It’s a supplemental insurance policy that pays cash benefits for hospital stays, skilled nursing care, or other covered events. It’s not health insurance—it’s extra protection.
For example, if your Medicare Advantage plan charges $300 per day for a hospital stay, an indemnity plan could pay you $300 per day to cover that exact cost.
How It Works
- You’re hospitalized
- Your plan pays a fixed amount per day (e.g., $250/day for up to 10 days)
- You use that money however you need—hospital bills, prescriptions, rent, groceries
It gives you flexibility and financial breathing room.
Benefits at a Glance
- Works with Medicare or Medicare Advantage
- Pays directly to you
- Helps cover deductibles and copays
- Often includes skilled nursing or rehab coverage
- Affordable monthly premiums
This is a popular choice for anyone with high cost-sharing plans or those who want peace of mind.
Who Might Benefit Most?
Hospital indemnity plans are especially valuable for:
- Individuals who are on Medicare Advantage plans with daily hospital copays
- Anyone with limited savings who would struggle to cover an unexpected hospital bill
- Those with chronic health conditions or a history of hospital stays
If you’ve ever looked at your plan and wondered how you’d afford several days in the hospital—this coverage is worth exploring.
Your Questions About Hospital Indemnity, Answered
What is hospital indemnity insurance?
It’s a supplemental plan that pays you cash when you’re hospitalized, helping offset daily copays or other expenses.
Does this replace my Medicare Advantage plan?
No. It adds an extra layer of protection and works with your existing plan.
How much does it pay?
It depends on the plan. Some pay per day, others per event. We help you compare options.
Can I use the money for non-medical bills?
Yes—use it for whatever helps you during recovery. It’s paid to you, not the hospital.
Source Attribution:
This information was obtained from www.medicare.gov.