Hospital Indemnity Insurance

What Does Hospital Indemnity Insurance Mean?

Hospital indemnity insurance is a supplementary health insurance policy that provides coverage for hospital expenses at a fixed rate per day spent in the hospital. This coverage can be extremely beneficial for anyone facing an extended hospital stay. It is often bought alongside other supplemental products like critical illness insurance, which pays a lump sum after a covered diagnosis.

Insuranceopedia Explains Hospital Indemnity Insurance

People who experience lengthy hospital stays can incur significant costs, with expenses potentially reaching thousands of dollars for extended inpatient care. A large portion of that bill comes from cost-sharing built into the primary policy itself, including the deductible and coinsurance the patient owes before the insurer pays in full. Without sufficient coverage, the patient may have to bear most of these costs. Hospital indemnity insurance helps alleviate some of this financial burden by providing additional coverage to the policyholder, helping to offset the high costs of a prolonged hospital stay.