Medicare Advantage Plan Risks

How supplementing your MA coverage can keep your out-of-pocket costs under control 

Perhaps more than ever before, Medicare-eligible Americans are switching to the low-premium (or no-premium) coverage of a Medicare Advantage (MA) plan. For many, this is one of the easiest ways to keep monthly costs down, and if the world that we live in is any indicator, cutting expenses is going to be the name of the game for some time to come.

Unfortunately, the reduced or non-existent premiums of an MA come at their own price in the form of high copays, massive deductibles, and coverage gaps that can leave a person dangerously exposed in the event of an unforeseen hospitalization.  It doesn’t stop at the hospital doors, either. Skilled nursing care facilities can cost an average of $227 per day, and your recovery could require weeks, potentially months of it.

Fortunately, there is no need to ditch your Medicare Advantage plan. You can keep right on enjoying the low monthly cost of your MA plan, as long as you take the steps to protect yourself from the risks associated with it.

Hospital Indemnity Plans are a simple, affordable solution that everyone with an MA plan needs to consider as an essential part of their long-term health care strategy.

The Frightening Cost of an Unexpected Hospital Visit

Medicare only goes so far when it comes to urgent or unexpected medical care. While the basic services and procedures will be covered, there are a surprising number of satellite costs that when combined can be devastating. Deductibles, transportation, observations stays, lodging, prescriptions … the list goes on.

This is all on top of the $6,700 out-of-pocket maximum for Medicare Advantage plans. It doesn’t matter whether someone is living off of retirement savings or Social Security: that is a big chunk of change to have to handle yourself while also dealing with the pain and hassle of injury or illness.

What is Hospital Indemnity Insurance?

Hospital Indemnity is a supplemental insurance plan that pays out pre-established cash benefits that are linked to specific “medical events”. These “if A, then B” payout structures allow patients to know exactly what kind of benefit they will be receiving based on the situation.

Primarily, Hospital Indemnity Plans pay out in a per-day cash benefit for each day that you spend in the hospital, but there are a number of other lump-sum cash benefits available for medical costs incurred before or after hospitalization. These include lodging, transportation, and any additional therapy or skilled nursing care that might be required.

The cash benefits of hospital indemnity coverage are paid directly to the policyholder and can be spent in whatever way they wish. This added flexibility is one more reason why this kind of supplemental coverage is so effective for MA policyholders.

Matching Your MA Coverage with Hospital Indemnity

Because not all Medicare Advantage plans are the same, your new hospital indemnity insurance will have to be tailored to meet the specific risks and weaknesses of your MA plan. This is one reason why it makes sense to seek the help of an insurance professional when trying to determine what kind of supplemental coverage you actually need. This is where we come in.

The key to mitigating any form of financial risk is sitting down to do the hard research, but fortunately for you, our team of experts has that part covered. With a quick phone call, we can help you understand how your current or potential Medicare Advantage plan might be bolstered by the added security of hospital indemnity.

Not yet enrolled in a Medicare Advantage plan? We can help you with that as well. Call today, or visit the MediGap Advisors web page to schedule a consultation.


Leslie Jablonski is a Personal Benefits Manager at MediGap Advisors. Leslie has a passion for bringing clarity to those confused about Medicare. She is an authority on Medicare, Medicare supplement plans, Medicare Advantage plans, and Part D prescription drug plans.