NEW YORK, NY / ACCESS Newswire / June 21, 2025 / A three-day stay in the hospital costs an average of $30,000 in the United States.1 While health insurance can help reduce your out-of-pocket costs if you have to be admitted to the hospital, there are contingent costs that may not be covered by your insurer. The cost of hospital stays, and other expenses like childcare could have a significant impact while you are unable to work. A hospital indemnity insurance policy can help with these costs. Here, we explore what health insurance helps cover and how the cash benefits of hospital indemnity insurance can help fill coverage gaps relating to recurring hospital stays.
What does health insurance help cover?
Many people receive health insurance through their employer, which can help with the cost of a hospital stay. Employer-sponsored health insurance plans cost an average of $111 per month, while Marketplace plans cost an average of $456 per month.2 So, if you're wondering, "How much is health insurance?," the answer depends on your specific circumstances and plan options.
Marketplace health insurance plans typically cover a range of essential health benefits, including:3
Outpatient services
Emergency services
Hospitalization for surgery or overnight stays
Pregnancy, maternity and newborn care
Mental health and behavioral health treatment
Prescription drugs
Rehabilitative and habilitative services and devices
Laboratory services
Preventive and wellness services
Chronic disease management
Pediatric services
Hospital costs are usually covered at least in part by primary health insurance plans, but you'll still have to pay copays and deductibles, and your health insurance plan may be subject to coverage limits.
What is hospital indemnity insurance?
Hospital indemnity insurance is a supplemental plan that can help fill gaps in your primary health insurance. It's not a replacement for health insurance but can help you with unexpected expenses and provide additional support if you've had multiple hospital stays that forced you to reach a coverage limit.
Hospital indemnity insurance works similarly to health insurance in that you pay premiums to an insurance provider in exchange for coverage. You may have access to a plan through your employer, or you can purchase an individual plan directly from an insurance company. Unlike health insurance, however, hospital indemnity insurance plans typically pay eligible cash benefits based on the policy option you choose. You can use the benefits in any way you see fit, such as:
Out-of-pocket medical expenses
Childcare
Living expenses like groceries, rent and utilities
Plans may function differently between providers, but typically, you can file a claim for care provided while in the hospital, and your insurance provider pays eligible claims to help you with the costs of your hospital stay.
Why is hospital indemnity insurance worth it?
There are a number of reasons why you might consider a hospital indemnity insurance plan. These may include:
Added financial assistance: Hospital stays can be expensive, especially if you have to go multiple times in the same year. Hospital indemnity insurance helps provide added financial support for recurring visits.
Flexibility: Health insurance plans typically pay the hospital directly for treatment. But hospital indemnity insurance pays cash benefits direct to the policyholder, unless otherwise assigned, so you can use it for both medical and non-medical costs.
Surpassing coverage limits: If you've reached a health insurance coverage limit after being admitted to the hospital several times, you could still use the hospital indemnity insurance.
Ultimately, if you think you or a family member will have multiple stays at the hospital in a given year, hospital indemnity insurance could help provide some added peace of mind.
The bottom line
Hospital indemnity insurance provides coverage options that can help with recurring hospital stays. This supplemental policy pays cash benefits direct to the policyholder, unless otherwise assigned, so you can use your benefits to help fill gaps in your health insurance coverage or help pay living expenses. Consider applying for a hospital indemnity insurance policy for added peace of mind.
Sources:
1 Healthcare.gov - Why health insurance is important. https://www.healthcare.gov/why-coverage-is-important/protection-from-high-medical-costs/. Accessed May 12, 2025.
2 Ramsey Solutions - How Much Does Health Insurance Cost? Updated May 12, 2025. https://www.ramseysolutions.com/insurance/how-much-does-health-insurance-cost. Accessed May 12, 2025.
3 Healthcare.gov - Health benefits & coverage. https://www.healthcare.gov/coverage/what-marketplace-plans-cover/. Accessed May 12, 2025.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.
Hospital, B40000 series: In Delaware, Policies B40100DE & B4010HDE. In Idaho, Policies B40100ID & B4010HID. In Oklahoma, Policies B40100OK & B4010HOK. In Pennsylvania, Policies B40100PA & B4010HPA. In Virginia, Policies B40100VA & B4010HVA.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY, VA or VT. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions.
Aflac WWHQ | 1932 Wynnton Road | Columbus, GA 31999
CONTACT:
Senior PR & Corporate Communications
Contact: Angie Blackmar, 706-392-2097 or ABlackmar2@aflac.com
SOURCE: Aflac
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