Two types of health indemnity policies are available to provide benefits in addition to your other health insurance coverage: a basic plan for individuals with certain pre-existing conditions and/or limited funds for health insurance premiums or out-of-pocket costs; and a supplemental plan which can fill gaps in qualified high-deductible health plans and health savings accounts (HSAs).
Hospital indemnity insurance provides a fixed daily, weekly or monthly benefit while the insured is confined in a hospital. The payment is not dependent on actual hospital charges, and is most commonly expressed as a flat dollar amount. Hospital indemnity benefits are paid in addition to any other benefits that may be available, and are typically used to pay out-of-pocket and non-covered expenses associated with the primary medical plan, and to help with additional expenses (e.g., child care) incurred while in the hospital.