The national average for a hospital stay is 4.5 days. At an average cost of $10,400 per day, that’s a total of $46,800.

Even the best health insurance plans have limitations, so looking into hospital indemnity insurance (also called “hospital insurance”) can be a smart move. This unique type of insurance pays cash directly to you if – and only if – you are hospitalized. It “supplements” and is different from health insurance, which pays for medical bills.

Hospital insurance can be purchased privately, and if you’re hospitalized, the benefit amount is sent directly to you instead of your doctor or hospital. This means you can use it as you see fit to pay for expenses, such as copays on regular insurance, childcare, or household bills incurred during recovery. The peace of mind that hospital insurance provides is enormous and allows you focus on recovering during a very stressful time.

How does hospital insurance work?

When you purchase hospital insurance, you’ll pay a premium each month. Then, if you’re admitted to the hospital due to an illness or accident – whether or not you have surgery – the insurance will provide a large, fixed payment to you. It may also issue you additional payments if you must stay overnight (usually a smaller amount for each night in the hospital) or if you are admitted to an intensive care or critical care unit (an additional fixed amount per overnight stay). Even if your medical insurance covers most of your hospitalization, you can still receive payments from your hospital indemnity insurance plan. And most hospital plans do not require a deductible or limit you to provider networks.

What it does not directly pay for is your medical bills from doctors or hospitals or for pharmacy medications. And be aware that it provides a flat payment – no more, no less – regardless of what your actual hospital expense is. It also may not be available immediately upon purchase, so talk to an insurance provider about a likely 30-day waiting period. In addition, some states require you to have an underlying health insurance plan before you can purchase a hospital indemnity plan.

Should I consider it?

While the decision to purchase hospital indemnity insurance is unique to each individual, here are some basic questions to consider: 

1. Does my current health insurance have limits on hospitalization coverage? If so, how am I going to pay for what health insurance does not?
2. Does my work offer short-term disability benefits? If not, hospital insurance may help you cover expenses while you are out of work and unpaid.
3. Do I have limited sick days at work? Can my family and I manage if I have to take unpaid days off?
4. Is my risk of going to the hospital greater at my age?
5. Am I starting a family? A hospital insurance plan can help cover the costs of childbirth and post-childbirth hospital stays.
6. Might I ever endure a long hospital stay or one requiring specialized treatment? Can I predict how much this would cost?

Finding a hospital insurance plan:

Like many supplemental insurance plans, hospital indemnity insurance is typically lower in cost than health insurance. The monthly cost of a plan will depend on your plan choice, age, gender, and possibly your tobacco use. Basic plans can start at just under $7 per month, and plans with a wider range of benefits can vary anywhere from $19 to $463 per month.

KeenanDirect can help you select a plan that complements your current health insurance coverage, budget, and family. To explore plans, please visit KeenanDirect.com or call KeenanDirect at 1-855-653-3626. One of our licensed agents will be happy to discuss the possibilities and provide a free plan quote.

If you’re ever hospitalized, the last thing you want to worry about is covering all the expenses that occur during recovery. We look forward to helping you find peace of mind.