Hospital indemnity insurance is a supplemental insurance plan that pays for the costs of a hospital admission that may not be covered by other insurance plans. The plan covers employees who are admitted to a hospital or Intensive Care Unit (ICU) for a covered sickness or injury. It’s available for companies with as few as two employees. Hospital indemnity insurance can be particularly helpful since a majority of Americans don’t have enough savings or income to cover unplanned medical bills. The plan pays cash directly to employees even if they don’t incur any out-of-pocket expenses. The payments can be used for any purpose, including the following:
- Medical co-pays
- Deductibles
- Regular expenses, such as food, rent, and utilities