Hospital Bills on Medicare Advantage? A South Jersey Guide
Medicare Advantage out-of-pocket maximums in Camden County average $9,115 for 2027, up from $8,291. A hospital indemnity plan pays you cash for each day in the hospital. Here is how it fits.
Key takeaways
- Medicare Advantage plans charge copays for hospital stays, often per day, up to the plan's yearly out-of-pocket maximum.
- For 2027, the average in-network maximum across all Medicare Advantage plans with drug coverage is $9,115 in Camden County, $9,088 in Burlington and $9,082 in Gloucester, each up from 2026.
- 16 of Camden County's 34 standard Medicare Advantage plans set the maximum at $9,850 for 2027.
- Hospital indemnity insurance pays a fixed cash amount for each day you are in the hospital, paid to you to use as you choose.
- It is a supplement, not health insurance on its own. Benefits, waiting periods and health questions vary by policy.
Medicare Advantage can be a good value, with low or $0 premiums and extras built in. The trade-off is that you pay copays when you use care, and a hospital stay is where those copays add up fastest.
In South Jersey, the worst case got more expensive for 2027. Across Camden, Burlington and Gloucester counties, the average in-network out-of-pocket maximum for Medicare Advantage plans with drug coverage rose by $612 to $824 depending on the county.
Jackie describes hospital indemnity plans this way: "These are specifically designed to help you fill gaps in your Medicare Advantage coverage by providing cash to help cover copays, coinsurance, deductibles, pharmacy prescriptions and other non-covered expenses that may arise from hospital stays and services." Here is how that works, with the local numbers.
How much can a hospital stay cost on Medicare Advantage?
Up to your plan's in-network out-of-pocket maximum for the year, plus your premium. Many plans charge a set copay for each of the first several days of an inpatient stay, then nothing more for that stay. Several stays, or a stay plus outpatient treatment, can take you to the maximum.
| County | 2026 | 2027 | Change |
|---|---|---|---|
| Camden County | $8,291 | $9,115 | +$824 |
| Burlington County | $8,323 | $9,088 | +$765 |
| Gloucester County | $8,470 | $9,082 | +$612 |
Source: CMS Medicare Advantage and Part D Landscape, Contract Year 2027.
Source: CMS CY2027 landscape, via the Ambrose Brain.
In Camden County, 23 of the 34 standard plans set a 2027 maximum of $9,000 or more, and 16 sit at $9,850. Your plan's exact hospital copays are in its 2027 Summary of Benefits and Annual Notice of Change.
What is hospital indemnity insurance?
A policy that pays you a fixed cash benefit when you are admitted to the hospital, usually a set amount per day. The money is paid to you, not the hospital, so you can use it for plan copays, a prescription, a ride home or a bill at home.
- Daily benefit: a set dollar amount for each day you are an inpatient, up to a number of days.
- Optional riders: some policies add benefits for observation stays, skilled nursing, ambulance or outpatient surgery.
- Premium: based on your age, the daily benefit you choose and the riders you add.
- Health questions: most policies ask some, and some have a waiting period for conditions you already have.
How do I size a hospital indemnity benefit?
Start from your own plan's hospital copays, not a rule of thumb. The aim is a daily benefit that covers most of the per-day copay for the days your plan charges it.
- Find your plan's inpatient copay per day and the number of days it applies, in the 2027 Summary of Benefits.
- Multiply to get the copay for one typical stay.
- Consider two stays in a year if you have a chronic condition or surgery planned.
- Compare the yearly premium with what the policy would pay for those stays.
- Remember the maximum. Once you hit your plan's out-of-pocket maximum, the plan pays in full, but the indemnity policy still pays you its benefit.
Our critical illness and hospital indemnity calculator lets you try different daily benefits.
Who should consider hospital indemnity in South Jersey?
It may fit if you
- Chose a $0 or low-premium Medicare Advantage plan
- Have a plan with a high maximum or high daily hospital copays
- Have a planned surgery or a condition that leads to admissions
- Would struggle to find a few thousand dollars at short notice
It may not be needed if you
- Have Original Medicare with a Medigap plan that covers the Part A deductible
- Have full NJ FamilyCare coverage that pays your Medicare cost sharing
- Have savings set aside for your plan's maximum
- Would pay more in premium than you are likely to collect
The bottom line
For 2027, Medicare Advantage maximums in South Jersey went up, to an average of $9,115 in Camden County, and 16 standard Camden plans sit at $9,850. If you chose a Medicare Advantage plan for its low premium, find its daily hospital copay, price one or two stays, and decide whether a hospital indemnity benefit would close the gap for less than it costs to self-insure.
Frequently asked questions
Does hospital indemnity insurance work with Medicare Advantage?
Yes. It pays you a fixed cash benefit for each day you are in the hospital, which you can use toward your Medicare Advantage copays or anything else.
What is the average Medicare Advantage out-of-pocket maximum in Camden County for 2027?
$9,115 across all Medicare Advantage plans with drug coverage, including Special Needs Plans, up from $8,291 in 2026, according to the CMS landscape files.
Do I need hospital indemnity if I have a Medigap plan?
Usually not for hospital costs, because most Medigap plans cover the Part A deductible and hospital coinsurance. It is mainly used to fill gaps in Medicare Advantage.
Is hospital indemnity insurance subject to health questions?
Most policies ask some health questions, and some have waiting periods for conditions you already have. The terms depend on the policy and the company.
Sources
- CMS Medicare Advantage and Part D Landscape, Contract Year 2027 Centers for Medicare & Medicaid Services
- CMS Medicare Advantage and Part D Landscape, Contract Year 2026 Centers for Medicare & Medicaid Services
- CMS fact sheet: 2026 Medicare Parts A and B premiums and deductibles Centers for Medicare & Medicaid Services
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