What Hospital Indemnity Insurance Covers

Many households are forced to live from paycheck to paycheck. What would happen if an employee were to experience an extended hospital stay? Chances are, the expense would over-extend their current major medical coverage, leading to potential financial trouble when they need to focus on recovery. A hospital indemnity insurance plan provides supplemental coverage that may be added to other existing health insurance plans. Benefits can be used as emergency funds to pay for co-pays, deductibles, childcare, living expenses, and other out-of-pocket expenses not already covered.

Many plans of this type pay a specified cash benefit directly to the employee for each day in the hospital. Most plans pay for:

  • Any hospitalization
  • ICU confinement
  • Critical Care confinement

Some plans may also cover additional hospital-related services for a higher premium:

  • Outpatient surgery, x-rays, diagnostics imaging, and lab procedures
  • ER visits
  • Continuous care
  • Ambulances
  • Doctor office visits

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