Type of health insurance that gives a predetermined benefit amount for each day an insured is in the hospital. Some policies provide higher benefit amounts if the insured is in an intensive or cardiac care unit. Also called hospital indemnity insurance .

Formal legal agreement between a managed care plan or insurance company with a hospital facility to provide inpatient and outpatient medical services to members of the plan with payment for the care by the plan.

Twenty-four-hour period when a patient is admitted to the hospital as an inpatient. The day of admission is considered a hospital day, but the day of discharge from the hospital is not. The time a patient spends receiving medical services as an outpatient is not considered as a hospital day.

Utilization measurement of the number of days per year of inpatient hospital care by members in a managed care plan. The formula is calculated by taking the total number of days spent in the hospital by the members and dividing it by the total number of members.

Type of insurance that has certain benefits for hospital services and associated medical expenses for treatment of a illness or injury. Most policies cover hospital charges for room and board and hospital services, surgeon’s and physician’s fees during a hospital stay, specific outpatient expenses, and extended care services such as convalescent or nursing home costs. Also called hospital-surgical expense insurance .
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Health insurance protection against the costs of hospital care resulting from the illness or injury of an insured person.

Group insurance benefit that covers hospital supplies and services other than room and board daily charges (e.g., x-rays, laboratory tests, medications, surgical dressings, anesthetics, use of an operating room). Also called miscellaneous hospital expense benefit .

Type of insurance that pays a certain cash amount for each day that the patient is in the hospital up to a specific number of days without taking into account the actual expense of the confinement. Some policies may provide higher benefit amounts if the insured is in an intensive or cardiac care unit. Indemnity insurance does not fill gaps in the Medicare coverage. Also called hospital confinement insurance .

Another name for “hospital market basket.” See hospital market basket .

1. See hospital indemnity insurance . 2. Medicare Part A under Title XVIII of the Social Security Act, in which coverage is generally provided automatically, and free of premiums, to (a) persons age 65 or older who are eligible for Social Security or Railroad Retirement benefits, whether they have claimed the monthly cash benefits or not, and (b) certain government employees and certain disabled individuals. This program provides basic protection against the costs of inpatient hospital services, posthospital skilled nursing care, home health services, and hospice care.

Trust fund that has as its primary source of income payroll taxes paid by employees and employers. This fund finances hospital and medical services covered under Medicare Part A.