Many folks wonder about how Medicare Advantage plan’s hospital coverage works.
Medicare Advantage plans are a great way to get health coverage for senior individuals and those on Medicare due to disability who qualify. But did you know that supplementing your Medicare Advantage plan with a hospital indemnity plan can provide even more comprehensive coverage? Let’s look at how this works and why it may be beneficial to you.
What is a Hospital Indemnity Plan?
A hospital indemnity plan is an insurance policy that pays out cash benefits for covered medical expenses due to illness or injury. This type of policy provides financial assistance for the costs associated with inpatient care and can also cover other related expenses such as medications, outpatient services, doctors’ visits, and more. It is important to note that these plans do not cover all medical expenses—that’s where Medicare Advantage comes in.
How Does a Hospital Indemnity Plan Supplement Medicare Advantage?
Medicare Advantage plans are designed to cover most of the same things as traditional Medicare Part A and Part B, but sometimes there are gaps in coverage. These gaps can include deductibles, copayments, coinsurance, or other out-of-pocket costs associated with health care services. That’s where a hospital indemnity plan comes in—it helps to fill those gaps in coverage by providing additional financial protection against unforeseen medical expenses.
For example, if you were hospitalized due to an unexpected illness or injury, your hospital indemnity plan would pay out cash benefits to help cover any out-of-pocket costs that your Medicare Advantage plan doesn’t cover. To better understand this, let’s take a look at the following case study combining a hospital indemnity plan with Medicare Advantage hospital coverage:
Jane is a 67-year-old female who has a Medicare Advantage plan that requires her to pay the first $300 per day that she is in the hospital. She must pay the $300 co-payment for the first 5 days she is an inpatient.
Jane is admitted into the hospital on March 2nd due to an accident that has damaged her knee and shoulder. It is determined that Jane needs to have a full knee replacement done and will also need physical therapy for her shoulder. Jane spends 4 nights in the hospital before being sent to a skilled nursing facility to get rehab for her knee and shoulder.
Jane will owe the hospital $1,200 for her stay ($300 x 4 days = $1,200). The good news for Jane is that her insurance agent helped her obtain a hospital indemnity plan that will cover $300 per day for up to 10 days each calendar year for only $29.00 per month. This means that Jane will receive a cash payment of $1,200 that she can in turn use to pay for her hospital bill.
It Gets Even Better!
Here’s the great news…if Jane were to go back into the hospital during the same calendar year, she would still have 6 days of benefits left on her hospital indemnity plan. So even if her Medicare Advantage plan covered all the hospital expenses, her hospital indemnity plan would continue to pay cash benefits directly to her. That extra money could be used anyway that Jane wants.
Why Should You Consider Adding a Hospital Indemnity Plan?
Adding a hospital indemnity plan to your existing Medicare Advantage plan can provide peace of mind and greater financial security for a very small monthly premium. Having both types of coverage means that you will have more comprehensive protection against unexpected hospital expenses due to illness or injury—which can help save money in the long run. Plus, many hospital indemnity plans come with additional options such as ambulance trip coverage, skilled nursing facility coverage, and even outpatient surgical expense coverage—so adding one could be well worth the cost!
Hospital indemnity plans can be an excellent way for individuals who qualify for Medicare Advantage to further protect their finances from unexpected medical costs due to illness or injury. If you are looking for additional peace of mind and financial security when it comes to health care costs and Medicare Advantage hospital coverage, then consider adding a hospital indemnity plan today! With its cash benefits, it could prove invaluable over time. To find out more about how a hospital indemnity plan could benefit you personally, call Senior Benefit Services at (800)924-4727.