According to the Agency for Healthcare Research and Quality, a hospital stay costs around $7,400 for 18 to 44 year olds and $12,500 for 45-64 year olds. Even for those with health plans that include hospitalization coverage, a night spent in the hospital can leave you with many expensive medical bills. That’s where a Supplemental Hospital Indemnity policy can help.

Supplemental Hospital Indemnity Insurance is designed to address gaps in primary coverage by helping pay out-of-pocket expenses. In this article, we will answer eight common questions about Supplemental Hospital Indemnity Insurance and discuss why you may want to consider a supplemental policy to complement your health plan. 

Who should enroll in Supplemental Hospital Indemnity Insurance?

Both medical residents and physicians are mostly likely to benefit from Supplemental Hospital Indemnity Insurance plans.

• Why younger physicians & medical residents? When you’re younger and healthy, you normally don’t expect a long hospital stay to occur. However, if you’re planning on starting a family soon, a hospital visit is inevitable.

• Why older physicians? Let’s face it, as we get older our health starts to deteriorate. A hospital stay for a surgery or an injury can definitely put a dent in your savings. Therefore, having a plan that can help out with the high price of a hospital stay can help.

How does it work?

Supplemental Hospital Indemnity Insurance is an add-on that you can purchase to help pay for out-of-pocket expenses that you may incur during a hospital stay. As Supplemental Hospital Indemnity Insurance is a standalone insurance plan to help offset the costs of a hospital stay, you do not have to be enrolled in a health insurance plan to be eligible. However, it is not a substitute for your primary health insurance policy.

Why is it so important to have?

Bottom line, you don’t know when something could happen to you or a loved one. That’s why having Supplemental Hospital Indemnity Insurance is so helpful. You will have that extra money to help with hospital costs when you need it most.

For younger physicians and medical residents that are planning on starting a family, Supplemental Indemnity Insurance can help cover hospital fees. According to the Kaiser Family Foundation, the average bill having a baby is around $9,700 for a normal delivery and approximately $12,500 for a cesarean section. Depending on your medical insurance plan, all your costs will probably not be completely covered and those extra funds from Hospital Indemnity Insurance can help.

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Who exactly is covered?

The insured has the option to cover only themselves or themselves and their family. So, as a resident or physician, you can insure your spouse and yourself for a quarterly fee. Plus, for those starting a family, not only is your spouse covered, but your newborn will also be covered for the first 30 days after he or she is born.

What does it cost?

• 30 year olds with family coverage that buy a $100 per night hospital stay costs $44 per quarter.

• 40 to 49 year olds with family coverage that buy a $100 per night hospital stay costs $47 per quarter

What does it pay?

The typical plan pays $100 per night to approximately $250 per night. The check is sent directly to you and is unrelated to your regular health insurance plan. Furthermore, if you’re admitted to the intensive care unit or if you are being treated for cancer, your nightly rate benefit doubles.  

Where can the money be used?

The best part about Supplemental Hospital Indemnity Insurance is that you don’t have to only use the payout for hospital fees. The funds can be used towards childcare, groceries, rent, utilities and any other expenses you weren’t able to keep up with while in the hospital.

Are there any reasons why I may not get paid?

Just like any plan, if you don’t meet the criteria, you run the risk of not getting your payout. Here are 4 common reasons why you may not get paid:

1. You must be admitted into the hospital and stay for at least one night in order to receive benefits.

2. Benefits for eligible expenses incurred for treatment of pre-existing condition (medical treatment was received during the six months prior to effective date) will not be available during the 12-month period following effective date of SHIP coverage.

3. You have to apply before the age of 65. This is true for all individuals whether you are a medical resident, physician or spouse.

4. Children over the age of 26 aren’t eligible.