With the supplements being so expensive in climbing in price every year, what is your take on hospital indemnity policies added with advantage policies?

Question

With the supplements being so expensive in climbing in price every year, what is your take on hospital indemnity policies added with advantage policies?￼

Jay Larshus · Accepted Answer

For some individuals who are worried about having a copay for Hospital Stays, indemnity policies can help by reimbursing you the copay amount or close to that amount. Keep in mind, the indemnity policies will have an added premium so you must factor that into your calculations. Most of my clients do NOT take out an indemnity policy.

Answered by Jay Larshus on June 24, 2025

Agent Licensed in TN & VA

Answered by Jay Larshus Medicare Insurance Agent

Alicia Hoilman · Answer

I believe adding a hospital indemnity plan may be a great solution to protect yourself from high copays for inpatient hospital stays and even ambulance copays. If approved for an indemnity plan, the cost are typically much lower than a Medicare Supplement and are often coupled with $0 premium Medicare Advantage Plan which is very affordable for those trying to stay within a specific budget yet still have peace of mind that a hospital stay will not hurt your wallet too much.

Answered by Alicia Hoilman on June 16, 2025

Broker Licensed in VA, DE, FL & MD

Answered by Alicia Hoilman Medicare Insurance Agent

William Lewkowski · Answer

If you need to switch to a Medicare Advantage policy, then a hospital indemnity policy is recommended to lessen the amount of out-of-pocket costs if admitted to the hospital. Another option is to replace your Medicare Supplement policy with a less expensive policy, but in most cases, you will be required to pass medical underwriting.

Answered by William Lewkowski on July 5, 2025

Broker Licensed in TN, AL, AR & 30 other states

Answered by William Lewkowski Medicare Insurance Agent

Steven Bleicher · Answer

I hear what you are saying. However, a Supplement is simply the better choice than taking the risk of exposing yourself to high hospitalization costs, even with an indemnity plan. You need to take stock of yourself by assessing whether your overall health is in jeopardy based on your family’s history of longevity, if your significant other is in good health and if you can aptly afford the monthly premiums of the Medigap plans at age 65.

Answered by Steven Bleicher on June 16, 2025

Broker Licensed in AZ

Answered by Steven Bleicher Medicare Insurance Agent

Steve Houchens · Answer

My personal thoughts on this matter is that hospital indemnity policies are extremely important to couple with a Medicare Advantage plan to help fill the gaps and help offset the potential out of pocket costs to the client. They are generally inexpensive and in my opinion well worth the cost.

Answered by Steve Houchens on June 16, 2025

Agent Licensed in KY & TN

Answered by Steve Houchens Medicare Insurance Agent

Barbara Barnes, CMIP® · Answer

I think that Hospital Indemnity Policies are a great idea in combination with Medicare Advantage. But please understand that the HIP will not cover every expense that you are exposed to in your Medicare Advantage plan. A good example is Physical Therapy. You may need 20+ PT visits at your specialist copay amount after a surgery or injury, and that really adds up. Another example would be chemotherapy / radiation treatments or yet another would be Skilled Nursing Care. These items would not necessarily be covered by a HIP but could cause you substantial out-of-pocket expense. Always talk to a licensed agent to learn what options are best for your needs before you purchase a policy.

Answered by Barbara Barnes, CMIP® on June 16, 2025

Agent Licensed in PA

Answered by Barbara Barnes, CMIP® Medicare Insurance Agent

Jim Willis · Answer

I fully believe in selling my clients on Hospital Indemnity plans that cover all of the hospital copays for about $21 per month.

There are also indemnity plans that cover ambulance costs, cancer and heart attack coverages, etc.  I personally have a policy that includes targeted cancer treatment in addition to indemnity coverages, cancer and heart attack lump sum coverages. I pay $88 per month for all of these coverages.

Why pay for a supplement when you can get a Medicare Advantage plan with drug coverage and all of these extra indemnity coverages for $88 per month?

Joy Spencer · Answer

Hospital indemnity plans pay you directly—a flat cash benefit—when you’re admitted to the hospital. That money can be used however you need: to cover copays, travel for family, lost income, even groceries .

Answered by Joy Spencer on July 10, 2025

Broker Licensed in MD

Answered by Joy Spencer Medicare Insurance Agent

Andrew Kramer · Answer

Yes, supplements are increasing in price now more than in the past, due to higher utilization due to covid. As for matching a hospital indemnity plan with an Advantage plan, that depends on the hospital co-pay of the Advantage plan. If it's a high co-pay, that might be a good idea, depending on the cost of the indemnity plan. Bear in mind, hospital stays are rare, so do the math with the indemnity plan cost compared to a hospital stay over say, a 10 year time period, to see if it makes sense.

Answered by Andrew Kramer on July 2, 2025

Agent Licensed in FL

Answered by Andrew Kramer Medicare Insurance Agent

Robert Simm · Answer

When considering indemnity insurance products, it is essential to shop around and compare options carefully. Focus not only on premiums but also on coverage details, as these vary significantly between insurance companies.

Every Medicare Advantage plan includes a maximum out-of-pocket limit for major health events such as kidney dialysis or cancer treatment. When properly structured to benefit Medicare recipients, these supplemental indemnity products represent excellent value, particularly considering that individuals have approximately a 50% likelihood of needing such coverage during their lifetime.

These products provide substantial long-term financial benefits because Medicare Advantage plans can become quite expensive, especially when maximum out-of-pocket expenses exceed $8,000 per calendar year. In such cases, indemnity coverage pays dividends repeatedly by offsetting these significant costs.

Eizel Mere · Answer

Hospital Indemnity plans will cover those out of pocket expenses and the things Medicare just does not cover. This way you are more likely to go to the doctor/hospital when you feel ill because you know you have something in place to cover your expenses. Also, the hospital indemnity plans I use do not go up in price like Medicare and Supplements do. If you cannot afford or dont want to pay for a Supplement you can have Supplement-like protection at a fraction of the cost.

Answered by Eizel Mere on June 16, 2025

Broker Licensed in FL

Answered by Eizel Mere Medicare Insurance Agent

Chuck Winslow · Answer

It is a must! If you have an advantage plan then you should have a hospital indemnity plan without a doubt! It is the only way to protect yourself or your family from a large out of pocket cost!

Kris Neupauer · Answer

Hospital indemnity plans are an excellent way to reduce costs. And it shows that you really are thinking about how to utilize everything that is available. Good on you for looking now at what options are available.

Answered by Kris Neupauer on July 7, 2025

Broker Licensed in MN, ND, SD & WI

Answered by Kris Neupauer Medicare Insurance Agent

Jami Mead · Answer

Hospital Indemnity policies are a great addition to the advantage plans. There are even some available that will help to offset the cost of you prescription medications by giving back so much. Some will do the same for office visits.

Answered by Jami Mead on June 16, 2025

Broker Licensed in OH, FL, GA & 11 other states

Answered by Jami Mead Medicare Insurance Agent

Leisha Stevens · Answer

As the costs of healthcare and supplemental insurance continue to rise, adding a hospital indemnity policy to your Medicare Advantage (MA) plan is a strategy that can help mitigate some of those expenses. Here's a breakdown of the key considerations: 
Understanding Hospital Indemnity Insurance with Medicare Advantage:
Supplemental Coverage: Hospital indemnity insurance acts as a supplement to your existing MA plan, meaning it helps cover expenses that MA plans might not fully cover.
Cash Benefits: These policies pay a fixed cash benefit directly to you for each day of covered hospitalization due to illness or injury. This is distinct from traditional health insurance, which pays providers directly.
Flexible Use: You can use these cash payments to cover various costs, including deductibles, copays, coinsurance, transportation, childcare, groceries, and even essential bills while you recover.
Filling Coverage Gaps: While MA plans cover many expenses associated with hospital stays, they often leave you with out-of-pocket costs such as daily hospital copays, ambulance fees, and skilled nursing facility costs. Hospital indemnity can help bridge these gaps and ease financial stress. 
Potential Benefits of Combining Hospital Indemnity and Medicare Advantage:
Financial Protection: Provides a safety net against unexpected hospitalization expenses, giving you peace of mind.
Cost Management: Helps you manage the costs associated with hospital stays, especially with the rising healthcare costs and potential fluctuations in MA plan coverage.
Flexibility: Allows you to use the cash benefit for various expenses, both medical and non-medical, based on your individual needs.
Affordability: Generally, these policies tend to have lower premiums compared to other types of supplemental insurance. 
Important Considerations:
Hospital Indemnity is NOT Health Insurance: It's crucial to remember that hospital indemnity insurance is a supplemental plan and does not replace your primary health

Barbara Klie · Answer

One way to avoid to annual increasing costs of Medicare supplement plans is getting a Medicare Advantage (Part C)plan and adding a hospital indemnity plan with it. 
A hospital indemnity plan can be a valuable addition to an advantage plan. These plans provide a cash benefit for each day you are hospitalized, which can cover out-of-pocket costs like co-payments, deductibles, or even non-medical expenses like transportation or household bills while you are in the hospital. This can give you peace of mind knowing that you have extra financial support during a hospital stay. 
If you choose a Medicare Supplement plan, you can still consider a hospital indemnity plan. It would work similarly by providing a cash benefit for hospital stays, helping to cover any additional costs that may arise, even though your Medigap plan helps with many of the out-of-pocket expenses associated with Medicare. 
Ultimately, the choice between a Medicare Advantage plan and a Medicare Supplement plan depends on your healthcare needs, preferences, and financial situation. Adding a hospital indemnity plan can provide extra financial protection regardless of which option you choose. It's important to evaluate your specific needs and consider how these plans can work together to provide comprehensive coverage for your personal healthcare.

Charla Brotherton · Answer

While I typically avoid responding to a question with another question, the decision to pair a hospital indemnity policy with a Medicare Advantage plan depends on several key factors. Most notably, the applicant’s current health status and age play a significant role, as does their budget and tolerance for out-of-pocket expenses.

That said, combining a hospital indemnity plan with a Medicare Advantage plan can be a highly effective strategy for certain individuals. It offers meaningful protection while potentially reducing monthly costs by $50 or more. Additionally, hospital indemnity premiums tend to remain more stable over time, especially when compared to the annual rate increases often seen with Medicare Supplement plans.

With the supplements being so expensive in climbing in price every year, what is your take on hospital indemnity policies added with advantage policies?

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With the supplements being so expensive in climbing in price every year, what is your take on hospital indemnity policies added with advantage policies?￼

Agents: Share Your Expertise

Seniors: Ask a Question of Your Own

Agent Locator

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With the supplements being so expensive in climbing in price every year, what is your take on hospital indemnity policies added with advantage policies?

Medicare Agents Hub
A non-government resource website