Hospital Indemnity Insurance
A hospital stay can cost thousands even with Medicare. Hospital indemnity pays you cash to help cover what insurance doesn't.
What hospital indemnity insurance is
Hospital indemnity insurance pays you a fixed cash benefit when you're hospitalized. Unlike regular health insurance, it doesn't pay doctors or hospitals directly - it pays you. You can use the money for anything: deductibles, copays, groceries, bills, whatever you need.
- • You pay a monthly premium (typically $30–100)
- • If you're admitted to the hospital, you file a claim
- • The insurance company sends you a check (e.g., $100–500 per day)
- • You spend the money however you need to
Why Medicare beneficiaries buy it
Even with Medicare, a hospital stay leaves you with significant out-of-pocket costs:
$1,676 per benefit period in 2025. You pay this each time you're admitted after 60 days out of the hospital.
After day 60, you pay $419/day coinsurance. After day 90, it's $838/day using lifetime reserve days.
MA plans have their own hospital copays - sometimes $200–500 per day for the first several days.
Bills don't stop when you're hospitalized. You still have rent, utilities, groceries for family, pet care, etc.
What to look for in a policy
How much per day? Is there an admission benefit (lump sum on day 1)? What about ICU - does it pay extra?
Some policies have a waiting period before benefits kick in. Look for policies with no waiting period if possible.
Many policies exclude hospitalizations related to pre-existing conditions for the first 6–12 months. Understand what's excluded.
Look for "guaranteed renewable" policies that can't be cancelled as long as you pay your premium.
Related coverage options
Want help understanding your options?
Our licensed agents can help you evaluate whether hospital indemnity makes sense for your situation and compare policies.
This is a solicitation for insurance. Medicare has neither reviewed nor endorsed this information.