Cigna Hospital Indemnity Insurance 2027: What It Pays Now That It's HealthSpring

Reviewed by Russell Noga, Licensed Medicare Insurance Broker (all 50 states) — Last updated October 27, 2026

People still search for Cigna hospital indemnity insurance, but the plan now carries the HealthSpring name. The question most people ask is simple: how much will it actually pay if I’m admitted?

Below is the payout schedule from the company’s own brochure, our math on what common hospital stays would pay, and how the plan fits with Medicare Advantage or a Medicare Supplement plan in 2027.

If you already own a Cigna-branded policy, nothing about your benefits changed with the name. Your policy schedule still controls what you’re paid. You may simply see HealthSpring on bills and letters.

When you apply, you choose one of two ways to be paid for a hospital confinement. The ranges below come from the Choice Hospital Indemnity brochure (Loyal American Life, March 2025 edition). State limits can be lower, so your quote shows the exact choices where you live.

A new stay counts as a separate confinement if it’s for a different illness or injury, or if 60 days pass between admissions for the same condition.

We added up the brochure benefits for a few typical admissions under Option 2, including the $10 daily base benefit. These are our own calculations from the published schedule, not quotes.

Each figure assumes you chose enough benefit days to cover the whole stay. If you picked a 5-day benefit and stay 10 days, days 6 to 10 pay only the $10 base benefit.

Every level includes the hospital confinement, daily base, observation, mental health and substance use benefits. The higher levels add more benefits for smaller events:

Optional riders cost extra: Ambulance ($50 to $400), Outpatient Diagnostic Exam and X-ray ($50 to $500), First Day Hospital Admission ($100 to $4,000, Option 2 only) and Intensive Care, which pays your full daily benefit again for up to 10 ICU days a year (Option 2 only).

Premiums depend on your age, state, benefit amount and riders. The company has published two examples:

Our math on the second example: $19.49 a month is $233.88 a year. One 5-day stay would pay $1,550, which is about 6.6 years of premiums. That’s the trade-off to weigh: steady small premiums against a lump of cash when you’re admitted.

No. This is a common mix-up. A Medicare Supplement plan pays your share of Medicare-approved bills directly to the doctor or hospital. Hospital indemnity is a fixed indemnity policy: it pays you a set amount, no matter what the bill is, and it doesn’t count as health insurance on its own.

If you’re still deciding between the two paths, our Medigap vs Medicare Advantage guide walks through the hospital costs on each side.

HealthSpring lists the plan for ages 18 to 89. It isn’t sold in Massachusetts, New Mexico or New York, and benefit choices and riders vary in other states. In some states an older Cigna Senior Choice version (ages 50 to 85, $100 to $450 a day) was sold instead, so check which form your quote is on.

Benefits above your actual medical costs may be taxable. A tax professional can tell you if that applies to you.

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