If you’re selling individual ACA plans or Medicare Advantage plans, you already know the out-of-pocket exposure for your clients can be pretty high. Even with a decent major medical policy, a short hospital stay could leave your clients with a staggering bill.

That’s where hospital indemnity insurance comes in. If you’re not talking about it, you could be leaving both money and value on the table.

Most Health Plans Have Big Cost Sharing

Let’s say your client chooses a Bronze ACA plan with a $7,500 deductible, or a Medicare Advantage plan with daily hospital copays, a three-day hospital stay could run thousands of dollars. That’s a big hit for most people, especially those living paycheck to paycheck or on a fixed income.

And yet, many clients assume that if they have health insurance, they’re covered; they don’t expect to be blindsided by a hospital bill. But the fact is that most health plans available today require the member to pay a significant share of the bill, especially for big inpatient expenses. That’s where a hospital indemnity plan can help.

What Does a Hospital Indemnity Plan Do?

Hospital indemnity plans are simple. If your client is hospitalized, they get a cash payout, typically a lump sum for the first day plus a daily benefit amount. The money goes directly to them, not to a provider. They can use it to pay their deductible or copayment, cover bills, help with lost income, or anything else they need.

Premiums are surprisingly affordable, and many plans offer guaranteed-issue options. Some plans even have optional riders that can cover ambulance rides, outpatient services, skilled nursing, or critical illness benefits.

Why You Should Offer Hospital Indemnity Plans

Your clients typically won’t ask about hospital indemnity coverage unless you bring it up. But once you do, most are grateful for the recommendation, and many enroll once they understand how it fills the gaps in their health coverage.

It’s a simple conversation that adds real value and increases your commission, without adding much complexity to the sale. Whether you’re helping a 30-year-old with a high-deductible ACA plan or a 70-year-old on Medicare Advantage, this is a product that makes sense.

Next Steps: Now’s the Time to Check In—and AHCP Can Help

Whether you market to individuals or seniors, chances are your clients would benefit from hospital indemnity coverage. And now, while things are a little quieter, is the perfect time to check in.

Open Enrollment and AEP will be here before you know it, and once the busy season hits, you won’t have time to add new products to your portfolio or introduce something new to clients. Taking the time now to get appointed, learn how the plans work, and start having conversations that give your clients the chance to truly consider this valuable option, before they're overwhelmed with other decisions.

At AHCP, we work with multiple carriers, like Allstate Health, UnitedHealthOne, and Manhattan Life, who offer hospital indemnity and other supplemental health products. If you’re not already offering them, we can help you get appointed, walk you through the benefits, and support you as you start offering them to your clients.

It’s a small add-on that makes a big difference for them and for you. Ready to get started? Let’s talk.