Medicare Advantage plans can provide comprehensive healthcare coverage and may include benefits beyond Original Medicare. But there is one important part of your coverage that is easy to overlook:

What could you have to pay out of pocket if you're hospitalized?

Even with Medicare Advantage coverage, a hospital stay can result in copayments, coinsurance and other expenses.

Depending on your plan and the care you receive, those costs can add up.

That's where Hospital Indemnity Insurance may be worth considering.

What Is Hospital Indemnity Insurance?

Hospital Indemnity Insurance is supplemental insurance designed to provide a fixed cash benefit when you experience a covered hospitalization or other qualifying medical event, according to the terms of the policy.

Unlike your primary health insurance, these benefits are generally paid directly to you.

That means the money can potentially be used to help with expenses such as:

• Medicare Advantage hospital copayments or coinsurance

• Transportation expenses

• Household bills

• Meals and other everyday expenses

• Other costs that may arise while you're recovering
  

Benefits, limitations and covered services vary by policy.

Why Consider It If You Already Have Medicare Advantage?

A common misconception is that having Medicare Advantage means you won't have significant out-of-pocket expenses.

Medicare Advantage plans have an annual maximum out-of-pocket limit for covered Part A and Part B services, but that doesn't mean every service is available with no cost-sharing.

Depending on your specific plan, you may have copayments or coinsurance for services such as:

• Hospital stays. Some plans require a copayment for each day of an inpatient hospital stay for a specified number of days.

• Emergency room visits. An unexpected trip to the emergency room may come with a copayment.

• Ambulance transportation. Ground or air ambulance services may involve additional cost-sharing.

• Skilled nursing care. Depending on the length of your stay and your plan's benefits, you may be responsible for certain costs.

The exact amount you pay depends on your Medicare Advantage plan.

Think About the Impact Beyond the Hospital Bill

An unexpected hospitalization can affect more than your healthcare budget.

There may be transportation costs for family members, meals away from home, help around the house and regular monthly expenses that don't stop simply because you're in the hospital.

A Hospital Indemnity policy can provide an additional financial resource during a covered event.

For someone living on a fixed retirement income, having that additional protection may provide valuable financial support.

Here's a Simple Example

Imagine your Medicare Advantage plan requires you to pay a daily copayment for the first several days of an inpatient hospital stay.

If you're hospitalized for five days, your portion of the cost could become a significant unexpected expense.

Now imagine having a Hospital Indemnity policy that provides a specified cash benefit for a covered hospital admission and/or each covered day you're hospitalized.

That benefit could help offset some of your out-of-pocket expenses.

The goal isn't to replace your Medicare Advantage coverage. It's to consider whether additional protection makes sense for the financial gaps you could potentially experience.

Is Hospital Indemnity Coverage Right for Everyone?

Not necessarily.

Your decision should be based on your individual situation, including your current Medicare Advantage plan, budget, savings and comfort level with potential out-of-pocket healthcare expenses.

A good place to start is by asking:

“If I were unexpectedly hospitalized tomorrow, would I be comfortable paying my plan's out-of-pocket costs?”

If the answer is no — or you're simply unsure — it may be worth reviewing supplemental coverage options.

Look Beyond the Monthly Premium

When reviewing healthcare coverage, it's easy to focus primarily on the monthly premium.

But understanding your potential out-of-pocket exposure can be just as important.

At Senior Benefits Advisors, we believe your healthcare coverage should be looked at as a complete picture.

Our licensed Benefits Advisors can help you understand your Medicare Advantage coverage, identify potential out-of-pocket costs and discuss whether supplemental products such as Hospital Indemnity Insurance may be appropriate for your individual needs.

Do You Know What a Hospital Stay Could Cost You?

Don't wait until you're admitted to the hospital to find out.

Contact Senior Benefits Advisors to schedule a complimentary coverage review and learn more about ways to help protect yourself from unexpected healthcare expenses.

Hospital Indemnity Insurance is supplemental insurance and is not a substitute for Medicare or other comprehensive health insurance.

Benefits, exclusions, limitations, eligibility requirements and availability vary by policy and state. Medicare Advantage plan costs and benefits vary by plan and service area. Senior Benefits Advisors is not connected with or endorsed by the U.S. government or the federal Medicare program.