health insurance

From a post on chucks_angels (arbofvalue) I looked at ehealthinsurance.

The cheapest is the Silver Plan at Kaiser Permanente for only $107 per month.

What does it cover? Well what does it not cover?

drugs: not covered
annual out of pocket: $5000
primary care physician: required
emergency room: $250/visit (Honolulu area)
hospitalization: $500 per day

So by my interpretation, the benefit is that it pays $500 per day hospitalization (which might be a fraction of what it actually costs). But since out of pocket is $5000. It pays for stays in the hospital for over 10 days. Since premium is about $100 per month ($1200 per year). It pays off only if you stay in the hospital for more than 12 days a year. For 12 days, you get $1000 (for two days over 10), but you're paying $1200. For 13 days, you get $1500.

Or it could be that you pay $500 per day for hospitalization and Kaiser pays the balance?