Major medical insurance covers many of the costs of medical treatments, but most plans don’t pay all the costs.

Plans require the insured to cover co-pays, deductibles, and additional costs for emergency services and extended hospital stays. In addition, many people are adversely impacted by indirect expenses. These can include lost wages, increased child care expenses, travel expenses and much more. These costs can quickly add up and one way to offset these expenses is with a voluntary hospital indemnity plan.

Hospital Indemnity plans are considered supplemental health coverage, meaning that they do not coordinate or reduce by benefits received under your major medical insurance. Major medical insurance will pay the hospital and doctor directly while a hospital indemnity plan will pay benefits directly to the insured. Therefore benefits are paid regardless of any other coverage.

Common areas that are covered in a hospital indemnity plan are daily hospital confinement, intensive care, inpatient physician’s attendance, surgery, anesthesia, transportation, etc. When any of these services are provided a predetermined cash benefit payment is triggered. These payments will continue to be paid accordingly as they apply.

Adding a hospital indemnity plan to your insurance portfolio can make a real difference in your standard of living during and following an illness or accident. This policy can be designed to cover an individual or the whole family. Premiums will be based on your age at the time you enroll as well as the plan level selected. Many employers introducing HRA and HSA plans will include the HI benefit as an employee paid option.