2026 Medicare Advantage


10,000 people have been reaching 65 every day
for the past 20 years.  As they are now entering
their 80's, their healthcare usage is increasing.

Daily Hospital Copays

Medicare Advantage hospital copays are increasing up to $500 or more per day which can be for
5 or 6 or 7 days, depending on the insurer.  5-day hospital stays could cost up to $2,500 or more.

 

What It Is

Hospital indemnity insurance is a supplemental policy that pays a cash benefit directly to
you when you are hospitalized.  This can be used for copays, deductibles, transportation,
meals, or other expenses that arise during or after a hospital stay.

Hospital Cost Comparisons (4 Choices)

Example 1 ... Part A Hospital Coverage (Original Medicare)
                            Cost = $0 per month ... has $1,716 Hospital Deductible
.
Example 2 ... $0 Premium Medicare Advantage
                            Cost = $0 per month ... has Daily Copays when hospitalized
.
Example 3 ... $0 Premium Medicare Advantage ... plus Hospital Indemnity Plan
                                Indemnity Plan pays you a cash benefit for each hospital stay
                                                                     Example:  $500 per day ... Up to 5 days                            
                                   Monthly Costs:     Age 65 = $41.25     Age 70 = $50.42     Age 70 = $60.00
                                                                            (need good health for medical underwriting)
.
Example 4 ... Medigap (Medicare Supplement) ... Hospital and Physicians and Outpatient
                            Cost = $250 per month ... Virtually 100% Hospital and Medical Coverage
 

When It May Not Be Worth It

Hospital indemnity coverage may be less beneficial ... If your Medicare Advantage plan already
has low inpatient copays ...If you have sufficient savings and can self-insure for hospital costs ... 
If you already have already have other supplemental coverage such as a critical illness plan.


Key Takeaway

Hospital indemnity insurance often makes sense for Medicare Advantage insureds who want predictable costs and protection from large hospital bills.  It may be less valuable for those 
with low or other coverage already in place.

Russ Swallow
Medicare Planning
508-450-2375
[email protected]