What is an in-hospital indemnity plan?
An in-hospital indemnity plan is a special type of health-insurance policy that pays a specific sum for each claim. This feature sets it apart from traditional payment-for-service health plans, in which payments are based on the actual cost of the medical services the policyholder receives. Indemnity plans are often much cheaper than payment-for-service plans, but they’re not always a great bargain. That’s because the set amount they’ll pay on a claim — say, a flat $125 per day for a hospital stay — might pale in comparison to the actual cost of the services you receive. If the hospital charges $350 a day, you’ll have to make up the difference. Because of this short-fall danger, such coverages should be used only as a supplement to help with deductibles and incidentals not covered by the primary plan.
Related Questions
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