Why this matters:
A hospitalization can disrupt a family’s income and increase expenses overnight. Californians deserve access to supplemental options that can support financial resilience while they focus on healing.

A hospitalization can disrupt a family’s income and increase expenses overnight. Californians deserve access to supplemental options that can support financial resilience while they focus on healing.

A personal example: in 2024, I had a stroke. I was off work for a full year while I recovered. During that time, I was in and out of medical appointments constantly—neurology visits, physical therapy, acupuncture, and more.

Even with health insurance, the costs added up fast: copays, medications, transportation, and everyday bills. My monthly out-of-pocket reality was $7,000/month.

Looking back, a Hospital Indemnity plan may have helped offset some of those costs and reduced the month-to-month pressure. The only saving grace at the time was a Critical Illness plan I had purchased about six months prior—plus a loving community around me.

We, the undersigned California residents, small business owners, and supporters, respectfully request that the State of California take action to improve access to Hospital Indemnity insurance options for consumers, while maintaining strong standards for transparency and consumer protection.

Hospital stays can create significant financial strain—even for individuals and families who have major medical coverage—due to deductibles, copays, coinsurance, transportation, childcare, time away from work, and other related expenses. Hospital Indemnity insurance is a supplemental product that may provide fixed cash benefits when a covered hospitalization occurs, helping households manage real-world costs during recovery.

We urge the State of California to review and modernize policies and regulations that may be limiting access to Hospital Indemnity coverage and to support solutions that:

Expand availability and consumer choice by enabling access to clearly defined Hospital Indemnity plans
Improve employer access, including practical pathways for small businesses to offer supplemental coverage options
Strengthen consumer education and modernization, including clear disclosures so consumers understand benefits, limitations, eligibility rules, and how supplemental coverage differs from major medical insurance

Our request:
We respectfully ask CDI and state legislators to prioritize this issue and pursue regulatory and/or legislative actions that expand access to Hospital Indemnity coverage in a way that is transparent, compliant, and consumer-protective.