A hospital indemnity plan is a type of supplemental health insurance that pays a fixed amount of money for each day you are hospitalized. This can help cover out-of-pocket costs that Original Medicare or a Medicare Advantage plan may not cover, such as deductibles, coinsurance, and copayments.
Hospital indemnity plans are not regulated by the federal government, so there is a lot of variation in terms of what they cover and how much they cost. It’s important to compare plans carefully before you buy one to make sure it meets your needs.
How Does a Hospital Indemnity Plan Pair with Medicare Advantage?
If you have a Medicare Advantage plan, you may be able to add a hospital indemnity plan to your coverage. This can give you additional peace of mind and help you avoid high out-of-pocket costs if you need to be hospitalized.
However, it’s important to note that not all Medicare Advantage plans allow you to add a hospital indemnity plan. And even if your plan does allow you to add one, there may be restrictions on what the plan covers. So it’s important to talk to your plan administrator to see if you can add a hospital indemnity plan and what the terms of the plan would be.
Pros of Adding a Hospital Indemnity Plan to Your Medicare Advantage Plan
There are several pros to adding a hospital indemnity plan to your Medicare Advantage plan. These include:
- Increased coverage: A hospital indemnity plan can provide you with additional coverage for hospitalization costs that your Medicare Advantage plan may not cover. This can help you avoid high out-of-pocket costs if you need to be hospitalized.
- Peace of mind: Knowing that you have additional coverage in place can give you peace of mind and help you focus on getting well.
- Flexibility: Hospital indemnity plans are often more flexible than other types of supplemental health insurance. For example, you may be able to choose a plan that pays a fixed amount per day or a plan that pays a percentage of your medical costs.
Cons of Adding a Hospital Indemnity Plan to Your Medicare Advantage Plan
There are also a few cons to consider before you add a hospital indemnity plan to your Medicare Advantage plan. These include:
- Cost: Hospital indemnity plans can be expensive, so it’s important to factor in the cost when you’re making your decision.
- Coverage limitations: Hospital indemnity plans often have coverage limitations, so it’s important to read the plan documents carefully to make sure you understand what is and is not covered.
- Duplicate coverage: If you have other types of supplemental health insurance, you may not need a hospital indemnity plan. Be sure to compare your coverage options to see if you have duplicate coverage.
Should You Add a Hospital Indemnity Plan to Your Medicare Advantage Plan?
The decision of whether or not to add a hospital indemnity plan to your Medicare Advantage plan is a personal one. You need to weigh the pros and cons carefully to decide if it’s the right choice for you. If you’re not sure, talk to your doctor or a financial advisor to get their advice.
Here are some questions to ask yourself to help you make your decision:
- How much can you afford to pay out-of-pocket for hospitalization costs?
- How much peace of mind would additional coverage give you?
- Are you comfortable with the coverage limitations of hospital indemnity plans?
- Do you have other types of supplemental health insurance?
If you answer yes to most of these questions, then a hospital indemnity plan may be a good choice for you. However, if you answer no to most of these questions, then you may not need a hospital indemnity plan.
Ultimately, the decision of whether or not to add a hospital indemnity plan to your Medicare Advantage plan is up to you. Weigh the pros and cons carefully to decide if it’s the right choice for you.