Hospital Indemnity

hospital indepminityWhat is Hospital Indemnity Insurance?

If your client is hospitalized, this policy will pay your client a daily benefit for in-hospital medical expenses and certain outpatient services. Some policies provide coverage for a limited period of time. This is a good product to have for your clients who make trips to the hospital often. It is also great for younger family members that might be accident prone and need the extra money for hospital bills.

If your clients are hospitalized, they can get stuck paying the amount not covered by their primary insurance, and that can get expensive. A hospital indemnity plan is a supplemental plan that covers some of the costs associated with a hospital stay and may provide extra coverage that your client’s health plan doesn’t.

Hospital Indemnity plans are not considered "Minimum Essential Coverage"

This insurance is not major medical coverage and does not satisfy the “minimum essential coverage” requirement of the Affordable Care Act.

Some of the benefits of these types of plans

Policies can provide coverage for persons 40 years of age and up with a cash benefit paid directly to your client to cover expenses associated with:

  • Hospital Confinement
  • Ambulance Benefit
  • Skilled Nursing Facility Confinement
  • Cancer
  • Outpatient Surgery

Letter from the NAIC to CMS about Hospital Indemnity plans

This insurance is not major medical coverage and does not satisfy the “minimum essential coverage” requirement of the Affordable Care Act.

Policies can provide coverage for persons 40 years of age and up with a cash benefit paid directly to your client to cover expenses associated with:

  • Hospital Confinement
  • Ambulance Benefit
  • Skilled Nursing Facility Confinement
  • Cancer
  • Outpatient Surgery