Hospital Indemnity Insurance: A New Way to Prepare for Unexpected HealthCare Costs
Every once in a while, I come across a product that genuinely excites me because I can immediately see how it could help many different people. GTL Advantage Plus Elite Hospital Indemnity Insurance is one of those products.
What excites me most is that this coverage isn’t limited to people enrolled in Medicare Advantage. It may be available to adults beginning at age 40 and can work alongside Original Medicare, Medicare Advantage or other major medical insurance. Even with health insurance, a hospital stay can create expenses you weren’t expecting. You may face deductibles, copayments, coinsurance or everyday expenses that continue while you’re recovering. Hospital indemnity insurance can provide an additional layer of financial protection.
What Is Hospital Indemnity Insurance?
Hospital indemnity insurance is supplemental coverage that pays cash benefits when you experience certain covered medical events. It doesn’t replace your health insurance or Medicare coverage. It works alongside your existing coverage and may help with expenses your primary plan doesn’t fully cover. The policy pays benefits based on the covered event and not on what your primary insurance company pays. Benefits are generally paid directly to you unless you choose to assign them to a healthcare provider.
Depending on your circumstances and the terms of your policy, the money may help with:
Medical deductibles, copayments or coinsurance
Transportation and travel expenses
Groceries and household bills
Help needed at home
Other expenses that arise while you recover
I especially like that you have flexibility in deciding where the money is needed most.
See How Hospital Indemnity Insurance Works
This short video provides a simple explanation of how hospital indemnity insurance can work alongside your current health coverage and help with certain unexpected expenses.
You Don’t Need a Medicare Advantage Plan
Although hospital indemnity insurance is often discussed as a way to help with Medicare Advantage hospital copayments, a Medicare Advantage plan isn’t required.
The coverage may also be considered by someone who has:
Original Medicare
Employer or individual health insurance
Other qualifying major medical coverage
For someone with Medicare Advantage, the cash benefit could help with hospital copayments or other covered expenses. For someone with Original Medicare, it could help with the Part A hospital deductible, coinsurance or other expenses associated with a covered hospital stay. For a younger adult with major medical insurance, it could provide additional financial support when a hospital stay creates a large deductible or other out-of-pocket costs. Eligibility, benefits and coverage options vary by age and state.
Here’s a Simple Medicare Advantage Example
Let’s say someone has a Medicare Advantage plan with a hospital copayment of $300 per day for the first six days.
A six-day inpatient hospital stay could leave that person responsible for $1,800:
$300 per day × 6 days = $1,800
If that person had selected a hospital indemnity benefit paying $300 per covered day for up to six days, the policy could pay $1,800 in cash benefits. This is a hypothetical example, but it demonstrates how the coverage can be designed around some of the potential expenses in a person’s primary health plan. Actual benefits and premiums depend on age, state, coverage selections and policy terms.
More Than Hospital-Stay Coverage
Another reason I’m excited about this product is the ability to customize it. Depending on availability and the options selected, riders may provide additional benefits associated with:
Ambulance transportation
Skilled nursing facility care
Outpatient physical, occupational or speech therapy
Outpatient surgery
Certain critical accidents
Cancer
Dental and vision care
Not everyone needs every option. The goal is to look at the potential costs in your current health coverage and focus on the areas that would be most difficult for you to manage financially.
Why I Believe This Is Worth Talking About
Many people assume that having health insurance or Medicare means they’re completely protected from large medical expenses. Unfortunately, that isn’t always the case.
A hospital stay could result in a deductible, daily copayments, coinsurance or costs for services received during recovery. You could also face nonmedical expenses that insurance doesn’t address.
Consider asking yourself:
Could I comfortably pay my health plan’s hospital deductible?
Would a hospital copayment of $1,000 or more disrupt my budget?
Could I manage the cost of an ambulance trip?
Would repeated therapy copayments become difficult?
Do I have savings set aside for unexpected healthcare expenses?
Would an additional cash benefit give me greater peace of mind?
Some people have enough savings to handle these costs. Others may feel more comfortable having another layer of protection.
There isn’t one correct answer for everyone.
Coverage Designed Around Your Needs
This isn’t a one-size-fits-all policy, and that’s one of the features I appreciate most.
We can review the deductibles, hospital costs, ambulance expenses and other out-of-pocket responsibilities in your current coverage. From there, we can explore options that fit your needs and budget.
GTL’s hospital confinement benefits may restore after 60 consecutive days without hospital confinement, allowing benefits to become available again for another eligible stay.
The company also states that premiums don’t automatically increase simply because you get older. However, overall premium rates aren’t guaranteed and could change in the future.
Is Hospital Indemnity Insurance Right for You?
Like every insurance product, hospital indemnity coverage has exclusions, limitations, waiting periods and specific eligibility requirements. Optional riders cost extra, and coverage varies by state. It’s important to review the complete policy details before making a decision.
I’m genuinely excited to share this option because I believe it could provide valuable financial protection for people of many different ages not only those enrolled in Medicare Advantage.
It won’t be necessary or appropriate for everyone, but I believe it’s worth understanding.
If you’d like to learn more, I’d be happy to review your current health coverage and show you how hospital indemnity insurance could work alongside it. There’s no pressure to enroll. My goal is to help you understand the coverage and decide whether it makes sense for you.
Cheryl Lockhart
(656)228-4979
Licensed independent health insurance agent
Coral Bay Insurance Services
By calling this number or providing your information you agree to speak with a licensed insurance agent about Medicare Advantage, Part D Prescription Drug Plans or Medicare Supplements. Not affiliated with any government agency including Medicare.
Advantage Plus Elite is a limited-benefit hospital indemnity insurance policy issued by Guarantee Trust Life Insurance Company. It is supplemental coverage and is not a substitute for Medicare, Medicare Advantage, Medicare Supplement insurance or other major medical coverage. Eligibility, product features and riders are subject to state availability and may vary.
The policy contains exclusions, limitations, reductions of benefits and terms under which coverage may be continued or discontinued. Please review the Outline of Coverage for complete details. GTL and its licensed agents are not connected with or endorsed by the U.S. government or the federal Medicare program.
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