Hospital Indemnity Insurance
What is hospital indemnity insurance?
Hospital indemnity insurance is a type of supplemental insurance that pays you a fixed cash amount when you're hospitalized. Unlike regular health insurance that pays doctors and hospitals directly, this money goes straight to you — and you can use it for anything.
- • You pay a monthly premium (usually $30–100/month)
- • If you're admitted to the hospital, you receive a cash payment
- • Payments are usually per-day ($100–500/day) or lump sum ($1,000–5,000 per admission)
- • The money is yours — use it for deductibles, bills, groceries, whatever you need
See how much you could receive
Use our calculator to compare hospital indemnity benefits vs. your Medicare out-of-pocket costs. Enter your age, coverage level, and Medicare type to see real scenarios — including what you'd receive from a 5-day stay, ICU admission, or multiple hospitalizations in a year.
Why this matters for Medicare beneficiaries
Medicare covers a lot of hospital costs, but you're still on the hook for deductibles and copays that can add up quickly — especially for longer stays.
$1,736
Per benefit period in 2026. If you're hospitalized twice in a year with a gap between, you could pay this twice.
$434–$868/day
After day 60, you pay $434/day. After day 90, it jumps to $868/day using lifetime reserve days.
Beyond medical bills, hospital stays often mean lost income, travel for family members, childcare costs, and everyday bills that don't stop. Hospital indemnity helps cover all of it.
Want to learn more about hospital indemnity?
We can help you understand if hospital indemnity makes sense for your situation and compare options available in your area.
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Hospital indemnity vs. Medigap
Both help with hospital costs, but they work differently. Here's how to think about it:
- Pays cash directly to you
- Use the money for anything
- Works with Medicare Advantage
- Usually lower premiums ($30–100/mo)
- Only pays when hospitalized
- Pays Medicare cost-sharing directly
- Covers deductibles, copays, coinsurance
- Only works with Original Medicare
- Higher premiums ($100–300+/mo)
- Covers hospital + outpatient costs
Can you have both? Yes. Some people on Original Medicare have Medigap for comprehensive coverage plus hospital indemnity for extra cash during hospital stays. If you're on Medicare Advantage, you can't have Medigap — but hospital indemnity is a popular option.