What is hospital indemnity insurance? And who needs it?

Cover any expense associated with a hospital stay. Yes, even the cost of the rideshare van.

Why hospital indemnity insurance adds value to any benefits mix

Hospital indemnity insurance can contribute to employee financial wellness. Medical costs, college debt, and other expenses are pushing stress levels higher. The average cost of a three-day hospital stay is $30,000.1 What’s more, roughly two-thirds (62 percent) of all bankruptcies are related to medical bills.2 And workers are turning to their employers for help: 52 percent of employees report they would face financial hardship without their workplace benefits, while 67 percent say their benefits are important because they would not be able to afford them otherwise.3

Employees want supplemental health insurance benefits like hospital indemnity insurance – in fact, offering these types of benefits could cause someone to want to work for the employer that offers them. In a recent survey, 55 percent of employees said they want supplemental health insurance benefits. Likewise, nearly as many stated that supplemental insurance offerings like hospital indemnity coverage were viewed as a welcome addition to help pay for expenses not covered by their medical plan, as well as expand care possibilities.4

How Guardian hospital indemnity insurance goes further

Hospital stays can cost thousands of dollars. While basic medical insurance covers some of the expenses, hospital indemnity insurance can help with some of the rest, allowing employees to feel more financially protected during and after a hospital stay. As an employer, offering coverage that brings welcomed financial help with expenses such as copayments, deductibles, and prescriptions shows employees they work for a company that cares.

Health Screening Benefit. This benefit, which is also known as a Wellness benefit, can be included on all Guardian supplemental health insurance products. It encourages employees to stay healthy by including an annual wellness benefit payment when they complete certain routine wellness procedures or screenings.

Support this benefit with an active enrollment strategy

When your company decides to offer hospital indemnity insurance, our approach to enrollment can help you design an experience that educates and engages employees, so they can make more informed benefit decisions.

Learn more about our active enrollment approach.


Source: "Protection from high medical costs," healthcare.gov

2,3 Source: Medical Bankruptcy: Still Common Despite the Affordable Care Act, American Journal of Public Health (AJPH), March 2019. 

Unless otherwise noted, the source of all information is Guardian’s 9th Annual (2020) Guardian Workplace Benefits Study, Benefits Optimization.

“Half of full-time workers have less than $2,500 saved for a medical emergency.” Source: Benefits Optimization, 9th Annual Guardian Workplace Benefits Study, 2020.

This content is not meant for anyone in the state of NM.

In Colorado Hospital Indemnity is known as Accident and Sickness Indemnity Insurance.

Guardian Hospital Indemnity Insurance is underwritten by The Guardian Life Insurance Company of America, New York, NY and will not be effective until approved by a Guardian underwriter. Products are not available in all states. Policy limitations and exclusions apply. Optional riders and/or features may incur additional costs.

2022-136593  20240430