Hospital Indemnity Plans. Most primary health insurance plans do not cover all hospital costs. If an applicant is hospitalized, they can be stuck paying the amounts not covered by their primary insurance, and that can get expensive. A hospital indemnity plan, also known as ancillaries, covers some of the costs associated with a hospital stay and may provide extra coverage that their health plan doesn’t.
Concerned about the cost of hospitalization? Rightly so—a hospital stay, even a short one, can be very expensive. Even with the best Medicare coverage, an applicant’s entire hospital bill probably won’t be covered.
What about things health insurance was never intended to cover, like transportation and meals for family members, help with child care or time away from work? Often it’s those unexpected expenses that add up quickly and force them to dip into your savings or borrow. A hospital confinement indemnity insurance policy is designed to provide them with cash benefits during a covered hospitalization