Real answers for your healthcare questions
What is hospital indemnity insurance and how does it work?
Answer
Hospital indemnity insurance is supplemental coverage that pays fixed benefits when you have a covered hospital admission, stay, or related service. The payment is based on the policy's schedule rather than the hospital's actual bill.
What to Know
A policy might pay one amount for admission and another amount for each covered day in the hospital. Benefits can help with deductibles, transportation, childcare, or other expenses, but the policy does not replace comprehensive medical insurance.
What to Do Next
Compare the premium with the admission and daily benefits, exclusions, waiting periods, and any limits on the number of covered days. Make sure you understand what qualifies as a covered hospital stay.
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