Fixed Indemnity
Pays set cash amounts for covered care, like a fixed amount per hospital day or doctor visit, to use however you need.
Fixed Indemnity at a Glance
A fixed indemnity plan pays a set dollar amount for covered events, such as a fixed amount for each day in the hospital or each doctor visit, no matter what the bill actually is.
The money goes to you or your provider to use as needed. Many people pair it with a high-deductible plan to cover out-of-pocket costs, or use it as lower-cost protection when major medical is out of reach.
How It Works
Know your benefit amounts up front
Each covered service has a set payout listed in the plan, such as a daily hospital benefit or a per-visit amount.
Get care, file a claim
After a covered event, the plan pays its fixed amount, often straight to you, regardless of what the provider charged.
Use the money as you need
Put it toward the bill, your deductible, or everyday costs like rent and groceries while you recover.
Good For
- Adding cash benefits on top of a high-deductible plan
- Help with hospital stays, surgery or doctor visits
- A lower monthly cost with predictable benefit amounts
Watch For
- It is not major medical insurance and is no substitute for it
- Benefits are fixed amounts, so a large bill can exceed them
- Not ACA-compliant and does not meet minimum essential coverage
Important information
Fixed indemnity plans are not comprehensive health insurance and do not meet the Affordable Care Act's requirements for minimum essential coverage. They pay fixed amounts that may be far less than your medical bills, and they may exclude pre-existing conditions.
Other Options to Compare
See how every option stacks up on our health insurance comparison.
ACA Marketplace
Comprehensive health insurance that covers pre-existing conditions, with income-based subsidies that can lower your premium.
Short-Term Medical
Temporary medical insurance for a gap, like waiting for employer coverage, missing Open Enrollment, or retiring a few months before Medicare.
Health Share
A membership where members share each other's eligible medical bills. Everyone is accepted, it often costs less per month than the Marketplace, and you choose any provider.
Frequently Asked Questions
Is fixed indemnity the same as health insurance?
No. It pays set cash amounts for covered events, such as a fixed amount per hospital day, regardless of the actual bill. It is not major medical coverage and does not meet ACA minimum essential coverage.
Who gets the money from a fixed indemnity plan?
Benefits are often paid to you, and you can use them for the medical bill or anything else, like your deductible or household costs while you recover.
Can I have fixed indemnity with another plan?
Yes. Many people pair it with a high-deductible or Marketplace plan to help cover out-of-pocket costs.
Not Sure Which Fits?
We compare Marketplace plans and the alternatives side by side for your situation, at no cost to you.