What is hospital insurance?
Hospital insurance is a contract where, in return for your
making premium payments, the insurance company agrees to pay part
or all of your hospital expenses. Plans differ considerably
regarding what and how much they will cover. It might cover only a
fixed percentage of your bill or might have a fixed upper limit on
coverage. A plan might have coverage for an ambulance trip to get
you to the hospital. It will typically cover costs such as your
room, medication, supplies, equipment used and hospital employees'
services. It typically will not cover costs of services of
non-employees. So you could expect it to pay for the services of a
doctor who is employed by the hospital but not the services of a
doctor who is in private practice. It typically will not
cover costs of services not directly provided by the hospital, such
as specialized therapy or specialized equipment. Hospital insurance
should not be confused with comprehensive medical insurance, which
covers medical expenses both in and out of the hospital.