If you’re admitted to the hospital suddenly, can you afford an extended hospital stay? There is a good chance that there will be expenses you will be responsible for beyond what your health plan covers. That is because 76% of Americans are living paycheck to paycheck, a sudden emergency room visit would more than likely throw you into serious financial trouble. Hospital visits aren’t that uncommon, and if you suffer from a chronic or critical illness this could be devastating to your finances. Here is why you should have a Colorado Hospital Indemnity plan with your Medicare Advantage
Did you know that in 2011, there were 136.3 million emergency department visits? Out of those 136.3 million, only one-third (40.2 million) of those visits were injury-related. And unfortunately, 16.2 million visits required hospital admission. Not only would there be concerns about getting hospital and doctors bills paid, but what about your daily expenses? Normal everyday expenses such as Housing, groceries, utility bills, etc. These all add up. And quickly!
Thankfully, there is a supplemental insurance plan that can cover the costs of extended hospital stays called: Hospital Indemnity Insurance.
Colorado Hospital Indemnity Plans create cost predictability and security with Medicare Advantage (MA). It pairs with MA to fill the gap in market between a low cost Medicare Advantage and a higher cost Medicare Supplement. The resulting coverage gives peace of mind to the consumer and allows for the ability to save money.
Medicare Advantage plans typically have low premiums, but the plans include multiple deductibles, co-payments and co-insurances that make them significantly more expensive. For example, the typical inpatient hospital deductible is $200-250 per day for the first seven days. The average hospital stay for patients age 65 and over is 5.5 days; resulting in $1,250 in out-of-pocket costs. And this is just one of many expenses. There is a Maximum Out Of Pocket (MOOP) limit available for all Medicare Advantage plans. But it is too high ($6,700) and provides little consolation.
When undergoing treatment or recovering for an extended period of time, people still have to pay all of their regular bills including health insurance premiums, rent or mortgage, credit card bills, food and utilities, etc. These policies pay either a lump sum upon first diagnosis, up to as much as $50,000, or pay per a schedule based on care received.
Over 3 million Americans now have protection against such costs, through a hospital indemnity plan or critical illness plan, purchased on an individual basis or through a plan offered by their employer. Hospital Indemnity policies, do have value and have provided much-needed financial assistance to many who’ve experienced a critical illness. Why not carry this protection over in retirement in addition to a Medicare Advantage Plan?
Are there Hospital Indemnity Plans designed specifically for Medicare Advantage members?
Recently, companies such as Medico, introduced such plans filling the gaps in Medicare Advantage coverage. Flexibility of these plans includes benefit amount and Days of Coverage. This allows you to customize plan that fits your needs.
Colorado Hospital Indemnity Plan Benefits Typically Include:
- Hospital Admission for Days 1-5
- Ambulance Transportation
- Emergency Room Coverage
- Laboratory and Radiology Benefits
- Skilled Nursing Facility Benefits
Colorado Medicare Advantage & Colorado Hospital Indemnity Plans – Working together
For many people with Medicare Advantage, the Hospital Indemnity plan may be beneficial in limiting their out-of-pocket costs.
Taking a $0 or low cost Medicare Advantage Plan, will allow you budget flexibility while covering the gaps. Spend the savings generated by a lower premium plan to give you peace of mind and security.