Benefits under these policies are not designed to fill gaps in your Medicare coverage. Hospital indemnity insurance pays a fixed cash amount for each day you are hospitalized up to a certain number of days. Some coverage may have added benefits such as surgical benefits or skilled nursing home confinement benefits.
Some policies have a maximum number of days or a maximum payment amount.
Specific disease insurance, which is not available in some States, provides benefits for only a single disease, such as cancer, or for a group of specified diseases. The value of such coverage depends on the chance you will get the specific disease or diseases covered. Benefits are usually limited to payment of a fixed amount for each type of treatment. Remember, Medicare and any Medigap policy you have will very likely cover costs associated with any specified diseases you may have. This means that the plan coverage pays first on your hospital and medical bills.