Keep Your Medicare Plan. Add Help With Hospital Costs.
Happy with your Medicare Advantage plan? Hospital indemnity insurance can pay cash benefits for covered hospital stays, helping you manage copays and other expenses.
What is hospital indemnity insurance?
In short: Hospital indemnity insurance is a separate policy that pays you a fixed cash benefit, such as a set amount per day, when you have a qualifying hospital stay. It does not replace your Medicare Advantage plan. It pays in addition to what your health plan covers, and the money is generally paid to you to use as you choose.
You keep your Medicare plan
Your Medicare Advantage plan continues to cover your care, with its own doctors, hospitals and copays. The hospital indemnity policy is bought separately and has its own premium.
You have a covered hospital stay
If you are admitted to the hospital for a stay the policy covers, you or a family member file a claim with the insurance company, usually with hospital paperwork.
The policy pays a set cash benefit
The benefit is a fixed amount, such as a daily amount for a set number of days or a lump sum per admission, according to the policy you choose. It is usually paid directly to you, not to the hospital.
Want to know how a hospital indemnity policy would line up with your plan’s hospital copays? I can compare them with you.
How a hospital indemnity benefit can offset Medicare Advantage hospital copays
Suppose your Medicare Advantage plan charges a $350 copay per day for days 1 through 5 of a hospital stay, and you are in the hospital for five days.
This is an illustration, subject to policy terms. Your plan’s hospital copay, the number of days it applies, and the policy’s daily benefit, covered days, waiting periods, limitations and exclusions will differ. A policy may cover some or all of your copays, depending on the policy and the hospital stay. Check your plan’s Evidence of Coverage for your actual inpatient costs.
Send me your plan name and I will show you your plan’s actual hospital copays and the benefit amounts available to you.
Can I spend a hospital indemnity benefit on anything?
In short: In most policies, yes. Because the benefit is generally paid to you, you decide how to use it.
Hospital copays
Pay the daily inpatient copays, deductibles or other cost sharing from your Medicare Advantage plan.
Household bills
Keep up with rent or mortgage, utilities, groceries and other bills while you recover.
Transportation
Rides to follow-up appointments, parking, or travel for a family member who comes to help.
Other needs
Help at home after a stay, prescriptions, medical supplies, or anything else you need.
Find out what a policy would cost at your age and in your state. A quote is free.
Who should consider hospital indemnity insurance?
In short: It is worth considering if you like your Medicare Advantage plan but want help managing potential hospital expenses. It is also available to people who have Original Medicare with a Medicare Supplement plan.
It may be a good fit if you:
- Like your Medicare Advantage plan’s doctors and benefits and do not want to switch.
- Have a plan with daily hospital copays or a high yearly out-of-pocket maximum.
- Live on a fixed income and would find a large, unexpected bill hard to pay.
- Want cash available for household costs during a hospital stay and recovery.
It may not be needed if you:
- Have a Medicare Supplement plan, such as Plan G, that already pays your Part A hospital deductible and coinsurance, and you do not want extra cash for other costs during a stay.
- Have Medicaid or a plan with little or no hospital cost sharing.
- Have savings set aside that you are comfortable using for hospital costs.
I will tell you honestly if it does not make sense for your situation.
You can buy hospital indemnity insurance with a Medicare Supplement plan, too.
Hospital indemnity insurance is not only for Medicare Advantage members. You can also buy it if you have Original Medicare with a Medicare Supplement (Medigap) plan. Because it pays a cash benefit directly to you, it does not replace your supplement or change what your supplement pays.
It may be most useful if your supplement leaves part of your hospital costs to you, such as Plan A, Plan K, Plan L, Plan M or High-Deductible Plan G, or if you want cash for expenses a supplement does not cover, like travel, meals, home help or household bills during a hospital stay and recovery.
Not sure whether it makes sense for you? Let us review your plan’s hospital costs together.
Six things to check before buying hospital indemnity insurance
Benefit amounts
How much the policy pays, and whether it pays per day, per admission, or both. Compare it with your plan’s hospital copays.
Covered days
How many days per stay and per year the policy pays. Many Medicare Advantage plans charge copays only for the first several days.
Exclusions
What is not covered, such as some pre-existing conditions. Ask whether observation stays count; observation is outpatient care, not an inpatient admission.
Waiting periods
How long after the policy starts before benefits apply, especially for certain conditions.
Health questions
Whether you must answer health questions to qualify. Some people may be declined or offered limited coverage.
Premiums
The monthly cost, whether it can increase, and whether the price is based on your age. Weigh the yearly premium against the benefit.
I will walk you through these six points for any policy before you decide. No pressure.
Hospital indemnity insurance questions
Can I buy hospital indemnity insurance if I have a Medicare Supplement plan?
Yes. Hospital indemnity insurance can be purchased with a Medicare Supplement (Medigap) plan as well as with a Medicare Advantage plan. It pays a fixed cash benefit to you for covered hospital stays and does not change what your supplement pays. It may be most helpful with plans that leave some hospital costs to you, such as Plan A, Plan K, Plan L, Plan M or High-Deductible Plan G.
Does hospital indemnity insurance replace my Medicare Advantage plan?
No. It is a separate policy that you keep alongside your Medicare Advantage plan. Your plan still covers your care; the hospital indemnity policy pays a fixed cash benefit for covered hospital stays.
Will hospital indemnity insurance pay all of my hospital copays?
Not always. The benefit may cover some or all of your copays, depending on the policy’s daily or per-admission benefit, the number of covered days, and the length and type of your hospital stay.
Who receives the money, me or the hospital?
In most policies, the benefit is paid directly to you unless you choose to assign it. You can use it for hospital bills or for other expenses.
Does an observation stay count as a hospital stay?
Often it does not. Observation is considered outpatient care, even if you stay overnight. Many policies pay only for an inpatient admission, so check the policy’s definition of a covered stay.
Can I be turned down for hospital indemnity insurance?
Yes. Many policies ask health questions, and the insurance company may decline coverage or limit benefits based on your answers. Availability and rules vary by state and by insurance company.
When can I buy a hospital indemnity policy?
Hospital indemnity insurance is not a Medicare plan, so it is generally not limited to Medicare enrollment periods. Many people apply when they choose or review their Medicare Advantage plan, but you can usually apply during the year.
Does it cost more to buy through you?
No. My help is free, and the premium is the same whether you buy through me or directly from the insurance company.
Still have questions? I am glad to answer them by phone or video.
New to Medicare? Start with the Medicare Resource Guide for Parts A, B, C and D, coverage choices and enrollment dates.
This page is general information about hospital indemnity insurance. The policy and its terms decide benefits, covered stays, limitations and exclusions. Reviewed by Rafael E. Mendoza, licensed insurance agent, REMCARE Insurance Agency, NPN 8929595. Last reviewed October 2, 2026.
Ask about hospital indemnity insurance
Tell me which Medicare plan you have, Medicare Advantage or a Medicare Supplement. I will show you its hospital costs and the hospital indemnity options available in your state. No cost and no obligation.
Rafael E. MendozaLicensed agent · 25 years · 15,000+ clients helped · English y español
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