The costs of medical care, particularly hospital stays, can quickly add up. Even with medical coverage, you may be required to pay for deductibles, co-payments and other out-of-pocket costs. Hospital Indemnity coverage or hospitalization insurance plans can help you be prepared for unexpected medical costs due to a hospital stay. These plans directly pay you a cash benefit whenever you or a covered loved one is admitted to the hospital. The insurance plans can help you manage expenses while you are being treated as an inpatient or outpatient.
IMPORTANCE OF HOSPITAL INDEMNITY COVERAGE
In addition to helping you receive cash benefits, a Hospital Indemnity Coverage plan has the following advantages:
- You do not need to meet a deductible to get your benefits
- Benefits are predetermined
- Benefits are paid irrespective of any other insurance plan
- A single plan can cover your entire family
- Coverage is renewable until the age of 65
HOSPITAL INDEMNITY INSURANCE IS NOT AN ACA MINIMUM ESSENTIAL COVERAGE
Hospital indemnity coverage is a supplement to health insurance. It is not a substitute for the minimum coverage required by the Affordable Care Act (ACA). Consequently, lack of major medical coverage (or some other minimum necessary insurance) may require an additional payment with your taxes.