Benefits of HIP Plans
Learn why Hospital Indemnity Plans are necessary.
What is a Hospital Indemnity Plan?
A hospital indemnity plan pays you cash when you go to the hospital. It's that simple.
You get a fixed amount for each day you're admitted. Use the money however you want. Pay bills, cover groceries, or handle unexpected costs Medicare doesn't cover.
How Much Do These Plans Pay?
Most plans pay between $100 to $500 per day you're in the hospital. Some pay extra for intensive care stays.
The benefit is paid directly to you, not the hospital. You decide how to spend it.
| Type of Stay | Daily Benefit Range | Maximum Days |
|---|---|---|
| Regular Hospital Room | $100–$500 | 365 days |
| Intensive Care Unit | $200–$1,000 | 30–60 days |
| Skilled Nursing Facility | $50–$200 | 100 days |
Why You Might Need This Coverage
Hospital stays are expensive, even with Medicare. You could face thousands in out-of-pocket costs.
Medicare Part A has a $1,676 deductible in 2025. Plus daily copays if you stay longer than 60 days. Those costs add up fast.
Real Example: 5-Day Hospital Stay
Let's say you're in the hospital for 5 days. Your Medicare covers most costs, but you still owe:
- $1,676 Medicare deductible
- $200 in additional copays
- $150 for medications not covered
- $100 for phone and TV in your room
Total out-of-pocket: $2,126
With a $300/day hospital plan, you'd receive $1,500 to help cover these costs.
Hospital Plans Work With Any Medicare Coverage
These plans work whether you have Original Medicare, Medicare Advantage, or a Medicare supplement.
They pay in addition to your other coverage. Think of it as extra protection for unexpected hospital bills.
Coverage for Family Emergencies
Hospital stays don't just cost money. They cost time away from work and normal life.
Your spouse might need to take time off to help you. Family members might travel to visit. Hospital indemnity benefits can help with these hidden costs too.
What About Pre-existing Conditions?
Most hospital indemnity plans don't require medical underwriting. You can get coverage even if you have health problems.
Some plans have waiting periods for pre-existing conditions. Usually 6 to 12 months.
How Much Do These Plans Cost?
Monthly premiums typically range from $25 to $75, depending on your age and benefit amount.
The cost is usually much less than what you'd pay for one hospital stay without the coverage.
Quick tip: Compare the monthly cost to your potential out-of-pocket hospital expenses. If you'd struggle to pay $2,000+ for a hospital stay, this coverage might make sense.
When Can You Enroll?
You can usually apply for hospital indemnity coverage any time of year. These aren't Medicare plans, so they don't follow Medicare enrollment rules.
Coverage typically starts 30 days after your first premium payment.
Is Hospital Indemnity Right for You?
Consider this coverage if you're on a fixed income or don't have much saved for emergencies.
It's especially helpful if you have health conditions that make hospital stays more likely. Or if you want peace of mind knowing you won't face big bills if something happens.