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What is hospital indemnity insurance? Hospital indemnity insurance is a type of plan that pays a set amount – per day, per week, per month, or per visit – if you’re confined in a hospital. How is a hospital indemnity insurance policy different from a traditional medical plan? Medical insurance reimburses the insured, or provider, for covered and approved medical services, procedures, equipment, and prescription drugs. A hospital indemnity insurance pays a lump-sum payment directly to the insured for a covered hospital confinement, outpatient surgery, and emergency injury or sickness. Is this plan compatible with a High Deductible Health Plan (HDHP) and Health Savings Account (HSA)? If you have an HDHP now (with or without an HSA), or if you plan to have these benefits in the future, we encourage you to consult your tax advisor. Your tax advisor can explain the tax implications of a hospital indemnity insurance plan and help you make informed decisions about your healthcare coverage. Do I have to be employed to enroll in a hospital indemnity insurance plan? No. Enrollment isn’t dependent on current or future employment. As long as you pay your premiums on time, coverage is guaranteed renewable to age 70. I’m thinking about getting hospital indemnity insurance for all of my family members. When are kids no longer eligible for the policy? At age 19 – or 26 if they’re full-time students. This may vary by state. Is there a waiting period before a hospital indemnity insurance pays benefits? Yes. Generally, a waiting period applies to the following situations. Benefits may vary by state and may not be approved in all states Cancer, hernia(s), adenoids and appendix or tonsils – (6) months unless treated on an emergency basis Pregnancy and childbirth - (10) months No benefits are provided or paid under this policy for care or treatment of any covered person donating an organ occurring during the first (12) months from the date of the policy. How is the hospital indemnity insurance benefit paid? When you experience a hospital confinement, outpatient surgery, or emergency accident or sickness, you submit a claim form along with the receipts for services received. You or your designee will receive a lump-sum payment as described in the policy. You or your designee can use the cash for whatever you choose.