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How Hospital Indemnity insurance helps before, during, and after hospital stays

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Riders make the most of your Hospital Indemnity insurance to help you cover costs for your hospitalization

If you’re concerned about rising health care costs and how you would financially deal with a serious medical event, you can protect your finances and find peace of mind with Hospital Indemnity insurance.1

According to the American Hospital Association Annual Survey, more than 33.3 million Americans were admitted to hospitals in 2022. The average cost of an inpatient hospital stay is $13,600 with Medicare.

Since major medical, Medicare, and Medicare Advantage plans don’t cover every dollar, an extensive hospital stay can result in hefty out-of-pocket costs. But Hospital Indemnity insurance can ease the burden by providing a cash benefit for each day you’re confined to a hospital or require outpatient services, depending on the coverage options. You choose the number of days per period of confinement and the amount per day. 

There’s no deductible or network. Benefits can be spent in whatever way you choose, even for services that are not directly related to hospitalization, such as copays or household expenses. Hospital Indemnity insurance is especially helpful if you have a high-deductible plan, like some Medicare Advantage plans. 

Riders can help you get the most out of your Hospital Indemnity insurance, and they typically cover one of four service categories:2 

1. Before hospitalization

Wellabe's Hospital Indemnity base plan includes an Emergency Room benefit, but the optional Ambulance Services benefit rider helps cover ground or air transportation to the hospital. The Urgent Care Center benefit rider pays $50 per day for up to four days each calendar year when you obtain urgent care services.

2. During inpatient hospitalization

Wellabe's Hospital Indemnity plan includes the Hospital Confinement benefit that pays a specified amount for each day you’re confined to a hospital and an Inpatient Mental Health benefit3 for confinement in a hospital due to a covered mental or nervous disorder. It also pays a Transportation and Lodging benefit4 to help with travel costs while you receive treatment at a hospital that is not near your home. The optional Lump Sum Hospital Confinement benefit rider can be added to the policy to help cover extra costs. 

The additional Lump Sum Cancer benefit rider can help you cover indirect costs related to most cancer-related treatments, like experimental trials, medicine, or even job loss.

3. During outpatient hospitalization

Wellabe's Hospital Indemnity plan offers an optional Outpatient Surgery benefit rider, but it includes an Observation Unit benefit as part of its base plan. The latter comes in handy if you’re placed under observation when you’re expected to need less than two nights of medically necessary care. This can become complicated financially, as Medicare recognizes observation care as an outpatient service and pays benefits differently than for inpatient services. 

4. After hospitalization

After hospitalization, it’s common for additional services to be necessary before you can safely return home. And the costs for these services can add up fast. With our optional Skilled Nursing Facility5 and Outpatient Therapy/Chiropractic Services benefit riders, these costs can be minimized.

All it takes is one hospital stay, and you’ll be thankful you realized the value of having Hospital Indemnity insurance.

Next steps

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Photo credit: iStock 

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