Hospital Indemnity Insurance

Schwenker Senior Insurance helps you stay financially secure during hospital stays with the right indemnity coverage.

Even with a solid Medicare Advantage plan, a hospital visit can lead to big, unexpected bills. A Hospital Indemnity (HI) policy helps fill in those gaps by paying you cash benefits — so you’re not scrambling to come up with money during an already stressful time.



Many people choose Medicare Advantage because of the low or $0 monthly premiums. But those savings can come with trade-offs — like daily hospital copays, skilled nursing coinsurance, ambulance rides, and other out-of-pocket costs. That’s where HI coverage can make a big difference.

For example, many MAPD plans charge $250–$350 per day for the first few days of a hospital stay. Add in a $40 copay for an ambulance ride or a skilled nursing bill after 20 days, and you could be looking at hundreds — even thousands — of dollars out of pocket. And that’s on top of any follow-up care like physical therapy or observation stays, which may also have separate copays.

This is where Hospital Indemnity steps in.

It’s designed to match your Medicare Advantage plan and provide you with a cash benefit that you can use however you need. The money goes straight to you, not a hospital or provider. Whether you want to pay down medical bills, cover travel or meals, or even make up for lost income while recovering, the choice is yours.

Let’s look at how it works in real life:

Joan, 74, spent four nights in the hospital after a fall. Her Medicare Advantage plan billed her $300 per day, for a total of $1,200. Her HI plan paid that exact amount directly to her — simple and stress-free.

Ron, 68, needed short-term rehab in a skilled nursing facility after surgery. His plan covered the first 20 days, but after that, he was responsible for $200 per day. His HI benefit helped offset the bill, saving him from dipping into his savings.

Ella, 71, took an ambulance to the ER and was admitted. Her plan waived the ER copay but charged a $275 hospital admission fee. Her indemnity plan covered the full amount, giving her peace of mind during recovery.

So how do you get started?

You choose the benefit amount that fits your plan and budget. Most people align their HI policy with the specific copays and coinsurance built into their Medicare Advantage plan. That way, they’re covered where it counts most.

This kind of protection is especially helpful for people on a fixed income or those who don’t have extra money set aside for medical surprises. And unlike most insurance, you’re in control of how the benefit is used. There are no networks, no waiting for claims — just fast, flexible support when you need it most.

If you’re currently enrolled in a Medicare Advantage plan — or even considering one — Hospital Indemnity insurance is worth a look. It’s one of the simplest ways to protect yourself from the financial curveballs that can come with a hospital stay.