How does hospital indemnity insurance work?
Hospital indemnity insurance is a supplemental insurance plan designed to pay for the costs of a hospital admission that may not be covered by other insurance. The plan covers employees who are admitted to a hospital or ICU for a covered sickness or injury. And it’s available for companies with as few as two employees.
A welcome financial safety net
Hospital indemnity insurance can be particularly helpful since a majority of Americans don’t have enough savings to cover unplanned medical bills.1 The plan pays cash directly to employees even if they don’t incur any out-of-pocket expenses. The payments can be used for any purpose, including:
- Medical copays
- Deductibles
- Regular expenses, such as food, rent, and utilities
Here’s an illustration of how Guardian Hospital Indemnity Insurance works
Carol goes to the ER for severe abdominal pain and nausea. She has a CT scan that reveals she has gallstones. She is admitted and has emergency surgery to remove her gallbladder. She stays for one night and is released the next day.
While Carol has medical insurance, she still needs to pay $3,815 of out-of-pocket expenses due to her deductible ($1,500), coinsurance, and other expenses not covered by her plan. Since she has Guardian Hospital Indemnity insurance, her out-of-pocket cost is reduced by 85% to $565.*
| Out-of-Pocket Cost Summary | Amount |
|---|---|
| Carol's Initial Out-of-Pocket Costs | $3,815 |
| Guardian Hospital Indemnity Total Benefit Paid to Carol | $3,250 |
| Diagnostic Exam (CT) | $250 |
| Hospital Admission | $1,000 |
| Inpatient Surgery Benefit | $2,000 |
| Carol's Net Out-of-Pocket Costs | $565 |
| Cost Savings | 85% |
*For illustrative purposes only. Covered benefits and benefit amounts may vary by employer-sponsored plan. See your plan for specific coverage amounts and details.
Easy, hassle-free enrollment
Guardian Hospital Indemnity Insurance is guaranteed issue, no health questions asked if an employee elects coverage during the annual open enrollment period.
- Guaranteed Issue
- No Medical Questions
- No Exams Required
Maximum flexibility for you and your employees
Guardian Hospital Indemnity Insurance can be tailored to complement any current medical or supplemental coverage an employee may have — whether it is from Guardian or not. And customizable plan designs enable you to offer coverage that best meets your employees’ needs.
Guardian Hospital Indemnity Insurance is also designed to meet your budget. You can provide coverage as a voluntary benefit — at no cost to your company — or you can pay for all or a portion of the cost.
