Bridging the Gap: How Fixed Indemnity Plans Can Help Your Medicare Clients Manage Out-of-Pocket Costs

As an agent serving the senior market, you’ve likely heard the same repeated concern: “I thought Medicare would cover more.”

Even with a solid plan in place, many older adults find themselves facing steep out-of-pocket costs when the unexpected happens, like hospital stays, outpatient tests, ambulance rides, and more.

For clients over age 65, the question isn't whether they’ll have medical costs, but when and how much. While Medicare and Medicare Advantage plans provide strong foundations, they don’t eliminate all the financial risk from:

• Hospital admissions and extended stays
• Outpatient surgery and diagnostic testing
• Emergency care and ambulance transport
• Skilled nursing or transitional recovery

Even clients who purchase Medicare Supplement (Medigap) plans aren’t entirely shielded. Although Medigap fills many of the cost gaps in Original Medicare, it still does not cover:

• Prescription drugs (Part D is separate)
• Routine dental, vision, or hearing
• Extended skilled nursing or long-term care
• Expenses for services Medicare doesn’t cover at all
• High deductibles under certain plan types (e.g., High Deductible Plan G)

That’s why fixed indemnity plans are so valuable across the board, regardless of whether your client choose Original Medicare + Medigap, or a Medicare Advantage plan.

Remember, fixed indemnity plans are supplemental and do not coordinate with Medicare.

Allstate Health’s Senior Indemnity Plan

Ideal for clients aged 55 to 74 and renewable to age 85, this plan suits a range of senior needs:

Key Features:

• Hospital admission coverage up to $5,000 per stay
• Daily inpatient benefits for sickness or injury up to $1,000/day for 31 days
• Surgical benefits up to $5,000 per procedure (Max plans)
• Outpatient benefits, including office and urgent care visits, lab work, and radiology
• Emergency coverage for ambulance and ER visits on select plans
• Skilled nursing and transitional care on select plans
• No network restrictions, so clients can see any provider

This plan is especially useful for those who want to shore up their Medicare Advantage plan with extra protection or who are waiting to qualify for Medicare altogether.

UnitedHealthOne’s AdvantageGuard Plan

AdvantageGuard is available to clients aged 60–90 and is renewable for life. This supplemental plan offers flexible cash benefits across a wide range of inpatient and outpatient services.

Included Core Benefits:

• Daily hospital confinement benefit options from $50 to $3,000
• Observation stays and mental health hospitalizations
• No waiting period for most benefits

Optional Add-Ons:

• Cancer rider with benefits up to $50,000
• ER and urgent care rider
• Outpatient surgery and diagnostic imaging
• Ambulance transportation (ground and air)
• Skilled nursing facility confinement
• Wellness rider for annual exams and screenings

Agents can tailor AdvantageGuard plans to match a client’s health history, financial concerns, and coverage goals without overlapping with their existing insurance.

Why This Matters for Agents

Clients trust you to help them protect both their health and their finances. By offering fixed indemnity options like these, you’re demonstrating a commitment to comprehensive planning. You're also building a competitive edge; agents who don’t present these plans are leaving a valuable opportunity on the table.

Equally important, offering these plans can increase client retention and satisfaction. Seniors who feel secure in their coverage are more likely to stay loyal to their agent and refer others.

Final Takeaway

If you're not already discussing fixed indemnity options with your Medicare clients, even those with Medigap, it's time to start. Plans like Allstate’s Senior Indemnity and UnitedHealthOne’s AdvantageGuard help close the financial gaps that traditional coverage leaves behind. That means fewer surprises for your clients, and stronger, more trusted relationships for you.

Plans availability and benefits vary by state. Refer to carrier materials for complete details.

For Agent use only. Not for consumer distribution.