Final answer:
Hospital indemnity insurance is the policy that pays a fixed benefit directly to the insured regardless of actual hospital expenses, which is different from fee-for-service or Medicare that deals with the actual medical costs.
Step-by-step explanation:
The policy that pays a fixed hospital benefit directly to the insured, regardless of the actual hospital expenses incurred, is known as Hospital indemnity insurance. This type of policy provides a predetermined amount on a per-day, per-week, or per-visit basis while the policyholder is confined in a hospital. It is distinct from other types of health coverage such as fee-for-service, Medicare, and health maintenance organizations (HMOs), which typically provide or reimburse the cost of medical services based on the actual expenses incurred or a fixed fee structure.
Medicare, on the other hand, is a public healthcare system primarily for people over 65 years old and is divided into parts. Part A covers some hospital charges, and Part B is an optional part that covers healthcare costs outside of hospital stays. Individuals with Medicare are responsible for deductibles and copayments, and certain coverage limits may apply. Unlike hospital indemnity insurance, Medicare is connected with the actual costs incurred during medical care.