Hospital stays can be very expensive, and even if you have a major medical plan, you likely have a deductible of a few thousand dollars. Hospital Indemnity insurance can help cover some of your out-of-pocket expenses.
Hospital Indemnity insurance pays you benefits when you are confined to a hospital, whether for planned or unplanned reasons. Most policies have options to add coverage for other medical services as well.
Medicare Part A does not cover hospital observation. If you need extended care after being under observation, Medicare will not cover Skilled Nursing Facility care, as that requires a qualified three-day inpatient hospital admission. Hospital Indemnity insurance have optional coverage available for Skilled Nursing Facility care.