Hospital Indemnity Plans (HIP) provide a benefit for these services and can pair well with a Medicare Advantage (MA) plan, so it’s no surprise that awareness and sales of these products are growing among distributors and seniors.

Based on Telos Actuarial estimates, new business premium for HIP products sold to seniors has grown, especially since 2019. In addition, loss ratios for these products have landed below expected levels. With the tremendous growth of MA products, this senior HIP growth is likely to continue.

  • Many seniors (2019 percentages range from 14% – 26% of the population based on age) have a hospital stay each year.

  • Many seniors (2019 percentages range from 23% – 31% of the population based on age) have an emergency department visit each year.

  • Both hospitalization and emergency department visits are not uncommon

HIP graph

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