Imagine you need hospital care for longer than your insurance covers you. Even a few days in the hospital can be extremely costly. Just a three-day hospital stay averages about $30,000. No matter what insurance you have, that can be an enormous expense. You may have uncovered out-of-pocket costs, deductibles, and other expenses that will be your responsibility to pay. Hospital Indemnity may be the answer when it comes to covering those gaps. Today, we’ll talk about how hospital indemnity works with Medicare. We’ll discuss what it is, why you may want it, and how you can customize it with your Medicare Advantage plan.
If you need help navigating your Medicare benefits, give our Medicare consultants in Memphis a call at 901-460-7220. You may alternatively fill out our convenient and secure online contact form here. We’re here to answer all of your Medicare questions, and we look forward to speaking with you.
What Hospital Indemnity?
When you have hospital indemnity insurance, it can help you cover these extra expenses that your other insurance doesn’t cover, such as out-of-pocket costs, deductibles, etc. It provides you with a cash benefit upon hospitalization that you can use however you need. Some expenses you may decide to use hospital indemnity for include:
- Income recovery
You can deposit this cash benefit right into a bank account and use it when you need to pay your bills. That way you can focus on healing and recovery, not how you’re going to pay all the costs that come with managing your recovery.
Why You Might Need Hospital indemnity
Many Medicare recipients wonder why they may need hospital indemnity if their supplements already cover most of their healthcare costs. Depending on your specific situation, you are likely covered adequately with your supplements or Medigap plans, however, you may have reason to look into hospital indemnity coverage, too. You’re probably safe with a Medigap policy, but if you give us a call, we can certainly advise you on the best direction to go.
While you may sometimes find the need for it on Original Medicare, Hospital indemnity insurance is typically best paired with Medicare Advantage plans. To understand the difference between Medicare Advantage plans and Original Medicare, read our blog on the subject here.
While your Medicare Advantage premium may be low, without something like a hospital indemnity plan, it may not justify the expenses you could accumulate if you end up having a certain health concern.
Say, in your Medicare Advantage plan, you have a copay of $345 every day you are in the hospital. That can add up quickly with extended stays. This kind of thing is what hospital indemnity insurance is designed to eliminate.
Another concern many Medicare Advantage members have at some point is skilled nursing facility costs. Many Medicare Advantage plans will cover 100% of skilled nursing facility stays from days 1 to 20. After that, depending on your plan, you will likely be responsible for a per-day copay until you reach your maximum out-of-pocket. This can be a significant cost that hospital indemnity can help you cover.
Some other reasons to consider hospital indemnity include:
- Outpatient surgery copays
- MRIs/Cat scans/etc
Most plans will cover 80% of out-of-pocket expenses, leaving 20% (with no cap) for patients to cover on their own. Twenty percent may sound low, but with things like chemotherapy, outpatient surgery, and certain diagnostic tests this 20% can mean large medical bills you may be expected to pay. Hospital indemnity insurance will help protect against this.
Customization of Hospital Indemnity
With hospital indemnity, you can build a plan that works for your needs. Some coverage you may consider includes:
- Ambulatory services copays
- Emergency room costs
- Skilled nursing facilities
- Physical therapy expenses
For a typical 65-year-old, this extra coverage usually costs somewhere in the range of $30 per month, depending on the size of your plan.
Call Our Medicare Advisors Today
To get an individualized quote, call our insurance and Medicare advisors at 901-460-7220. Additionally, you may fill out our convenient and confidential online form here. We look forward to helping you customize your policy to ensure you’re protected should you need to be.