Medicare Advantage Plans are an increasingly popular choice for Medicare coverage among seniors. Medicare Advantage Plans (MA/MAPDs) offer the same coverage as Original Medicare and also provide an annual out-of-pocket maximum, offering financial protection to enrollees.
But that's not all; Medicare Advantage Plans often include prescription drug coverage and extra benefits beyond Original Medicare, such as vision, hearing and even dental coverage. Even so, Medicare Advantage Plans do have costs such as deductibles, copays and coinsurance. To help offset the costs you may be responsible for, obtaining supplemental coverage can help provide peace of mind and financial protection.
Supplemental plans have been around for some time but are becoming increasingly popular as healthcare costs have become a bigger burden on an individual's wallet. These additional plans are known as Hospital and Cancer Indemnity plans. These plans, paired with your Medicare Advantage plan, can allow you to reduce some of the unknown out-of-pocket costs you are vulnerable to with a Medicare Advantage plan, which is different than a Medigap plan, but also allow you to have access to some of the MAPD additional plan benefits like vision, dental, and hearing.
Keep reading to learn more about both types of plans, how they work together and whether they are right for you.
Yes. Hospital indemnity insurance is designed to work alongside other types of health insurance, including Medicare Advantage plans, by paying a fixed cash benefit for covered hospital stays or other qualifying events. Those benefits can help cover deductibles, copays and other eligible out-of-pocket expenses, depending on the policy.
Medicare Advantage plans, also known as Medicare Part C, are an alternative to Original Medicare offered by private insurance companies approved by Medicare. They provide all the coverage included with Medicare Parts A and B, may include prescription drug coverage (Part D), and often offer additional coverage and benefits beyond Original Medicare.
Learn more about Medicare Part C Advantage Plans
Hospital indemnity insurance is a type of supplemental insurance that can be purchased that provides a fixed cash benefit that is paid directly to the policyholder in the event of a qualifying hospitalization.
What Is Hospital Indemnity Insurance and What Does It Cover?
Hospital indemnity insurance complements Medicare Advantage Plans by filling in the gaps when out-of-pocket costs, such as copays or coinsurance, are required from Medicare Advantage enrollees following a hospitalization. Whereas Medicare Advantage plans pay the provider, hospital indemnity coverage pays the policyholder directly, and this additional financial support can be used however they choose, such as paying their responsibility of the medical bills, household bills, groceries or anything else.
Bruce has a Medicare Advantage plan and is hospitalized for four days.
His Medicare Advantage plan covers much of the hospital bill, but he is still responsible for certain copays. Depending on his plan, it could be several hundred dollars per day he is admitted.
His hospital indemnity policy pays a fixed benefit that helps offset those remaining expenses and other costs.
Hospital Indemnity benefits are paid directly to the policyholder, allowing them to decide how to use them. They can help cover the costs for things like:
You don't have to be on Medicare to benefit from a hospital indemnity plan; in fact, they are common for those on any high-deductible health insurance coverage or someone just wanting additional coverage.
Hospital indemnity insurance can provide valuable financial protection for people in many different situations. We have seen firsthand how it can be especially beneficial for individuals enrolled in a Medicare Advantage Plan with a PER-DAY hospital copay, helping offset some of the out-of-pocket costs associated with a hospital stay.
No, hospital indemnity insurance does not pay your hospital bill directly - the benefit funds are paid directly to you, and you can choose how to use the funds, which could include paying your responsibility for the hospital bill.
Even if you are healthy, hospital indemnity insurance may still be worth having, especially if you have a low-premium Medicare Advantage plan that has higher out-of-pocket hospital costs and maximum out-of-pockets.
Yes, hospital indemnity benefits can be used for non-medical expenses, as it is at the discretion of the policyholder to choose how they would like to use the funds.
Talking with an experienced Medicare advisor can help you understand how these coverages work together, compare plan options, and determine whether supplemental protection aligns with your healthcare needs and budget. At Twin City Underwriters, we've been specializing in health insurance coverage for nearly 60 years; our team is dedicated to providing our clients with personalized, unbiased support and recommendations on Medicare and supplemental insurance, so you can be confident that your coverage supports your health, budget and lifestyle.
Contact us today for personalized guidance.
Choosing a Medicare plan can be difficult. Twin City Underwriters helps Medicare recipients in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa and Florida find the Medicare plan that meets their unique needs. Schedule a one-on-one meeting with one of our Medicare insurance brokers to get your questions answered!
Do you need help with Medicare, insurance and health plans? Explore your options with Allina Health Aetna, BlueCross BlueShield of Minnesota, Medica, HealthPartners, Health Spring, Humana, Security Health Plan, United HealthCare and more. We work with you to find the best plan for your needs and budget. Contact us today to get started.