While you can’t always predict when and where you’ll need hospital care, there are ways you can be financially prepared.

Whether you’re at the hospital because of an emergency or for a planned procedure, it’s a good idea to be prepared for potentially large medical costs. Even with a health insurance plan, care can be expensive.

While you can’t predict when and where you’ll need a hospital stay, there are a few simple ways you can be financially prepared for nonemergency care. Here are 5 options.

Hospital stays can get expensive fast. Learn how hospital indemnity insurance can help. Start by entering your zip code to check availability in your area.

1. Consider getting hospital indemnity insurance.

These supplemental insurance plans — which are separate from your health insurance coverage — can help pay expenses for those hospital stays, says Caitlin Donovan. She’s the senior director of the National Patient Advocate Foundation. Hospital indemnity insurance may be offered through an employer or private insurance company as a supplement to an employee’s existing health plan.

Hospital indemnity insurance, which may also be called hospital or hospitalization insurance, pays a lump-sum benefit for a set number of days you’re in the hospital. You can also use the money to help pay:

• Your health plan deductible. That’s the amount you pay out of pocket for covered health services before your insurance company starts to pay.
• Your out-of-pocket maximum. That’s the most you have to pay for covered health services in a plan year, and that out-of-pocket maximum is something you may reach after even a short stay in the hospital.
• Prescription medication costs.
• Other expenses, such as mortgage or rent payments, groceries and more.

The truth is that many of us aren’t prepared for unexpected medical costs. In 2023, 27% of adults went without some form of medical care because they couldn’t afford it. Hospital indemnity insurance can help ease your budget when you need it most.

2. Choose in-network providers and facilities.

There’s a federal law called the No Surprises Act that “protects you from surprise billing for emergency services if you have a group health plan or individual health insurance coverage” by limiting “the amount you pay out of pocket to a level closer to what you would pay if the healthcare provider were in-network.”

But if you’re having a planned procedure done, that’s a different story. You’ll want to make sure that the provider performing the surgery and the hospital at which you’re receiving it are in-network. That’s important because even with health coverage, the average cost of a 3-day hospital stay is around $30,000.

When a provider and/or hospital is in-network, that means your insurance provider has contracted with them to provide members, like you, with medical care for predetermined prices. 

You’ll typically pay more if you see an out-of-network provider or have a procedure done at an out-of-network facility. Also, some out-of-network providers may even perform surgeries at out-of-network facilities, so things could get pricey quickly.
It’s worth noting that just because you choose a hospital that’s in-network doesn’t mean it’s going to be a bargain. You may still need to pay your plan’s out-of-pocket in-network maximum, which can also cost several thousand dollars.

3. Check your bills for charges from out-of-network providers.

You’ll want to carefully monitor your health insurance bills to make sure you aren’t being charged by an out-of-network provider for emergency room care or any care received at an in-network facility, stresses Patricia Kelmar. She’s the senior director of healthcare campaigns at the Public Interest Research Group, a nonprofit consumer advocacy organization.

Remember that out-of-network providers may bill you for the difference between what your plan agreed to pay and the full amount charged for an emergency service, facility or provider (this is called balance billing). This amount is likely more than the in-network cost for the same emergency service, facility or provider, and it might not count toward your annual out-of-pocket limit.

Your health plan will give you a statement — called an explanation of benefits, or EOB — that shows the in-network cost-sharing amount you owe for each bill. Kelmar recommends that before you pay each one, you compare the bill to your EOB to make sure you’re not being overcharged.

The one exception is ground ambulances. Some states do have limited protections against surprise ambulance bills, so Kelmar advises that you still call your insurance company to find out if the protections apply to you.

A lengthy hospital stay can put a strain on your family’s finances. Hospital insurance can help pay for groceries, childcare and more. Learn how.

4. Watch out for the notice and consent form.

In nonemergency situations where you’re scheduling treatment in advance, some out-of-network doctors may ask you to sign a notice and consent form. You may see it referred to as the Surprise Billing Protection Form, says Kelmar.

“If you sign this form, you will lose your protection from surprise medical bills,” says Kelmar. Doctors also aren’t allowed to wait until the last minute to provide it. The form must be given to you at least 3 days before treatment or, if scheduling for same-day care, at least 3 hours before treatment.

This form should also list in-network doctors who are available to provide that same care. Kelmar suggests trying to use them first, which will cost less.

If you do decide to go with an out-of-network provider, make sure you receive an estimate of the charges. That way you’ll know what you’ll be charged for that out-of-network provider’s care. These amounts won’t be applied to your deductible.

5. Don’t use your credit card to pay for medical bills.

According to the Robert Wood Johnson Foundation, 1 in 4 adults with past-due medical debt said they used a credit card to pay for some or all of their medical bills.

Some good news: Medical debt can no longer affect your credit score. But if you pay for medical expenses with a credit card and incur late payments, which are subject to interest, they can affect your credit score.

If you can’t afford to pay your out-of-pocket medical expenses up front, you may have another option: a payment plan. You’d negotiate paying back your medical bills to the facility in smaller chunks versus all at once.

You may even be able to negotiate a reduction in the total amount you owe if they offer financial assistance programs. It’s important to understand the terms of the payment plan. That includes any interest rates and fees.

You can check how much supplemental hospital indemnity insurance may cost by simply entering your zip code. You can also call 1-844-211-7730 and ask a licensed insurance agent about plans.

For informational purposes only. This information is compiled by UnitedHealthcare, and/or one of its affiliates, and does not diagnose problems or recommend specific treatment. Services and medical technologies referenced herein may not be covered under your plan. Please consult directly with your primary care physician if you need medical advice.

Sources:

Board of Governors of the Federal Reserve System. “Report on the Economic Well-being of U.S. Households in 2023–May 2024.” May 28, 2024. Retrieved from https://www.federalreserve.gov/publications/2024-economic-well-being-of-us-households-in-2023-expenses.htm

Centers for Medicare & Medicaid Services. “Decision Tree: Notice and Consent.” September 2023. Retrieved from www.cms.gov/files/document/nsa-notice-and-consent-decision-tree.pdf

Consumer Financial Protection Bureau. “What Is a ‘Surprise Medical Bill’ and What Should I Know about the No Surprises Act?” December 7, 2023. Retrieved from https://www.consumerfinance.gov/ask-cfpb/what-is-a-surprise-medical-bill-and-what-should-i-know-about-the-no-surprises-act-en-2123/

Consumer Financial Protection Bureau. “What Should I Know about Medical Credit Cards and Payment Plans for Medical Bills?” May 8, 2023. Retrieved from https://www.consumerfinance.gov/ask-cfpb/what-should-i-know-about-medical-credit-cards-and-payment-plans-for-medical-bills-en-1827/

Healthcare.gov. “Why Health Insurance Is Important.” Retrieved from https://www.healthcare.gov/why-coverage-is-important/protection-from-high-medical-costs/ Accessed July 6, 2024.

Robert Wood Johnson Foundation. “Risk of Using Credit Cards to Pay Medical Bills.” September 5, 2023. Retrieved from https://www.rwjf.org/en/insights/our-research/2023/09/risk-of-using-credit-cards-to-pay-medical-bills.html

Whitehouse.gov. “Fact Sheet: Vice President Harris Announces Final Rule Removing Medical Debt from All Credit Reports.” January 7, 2025. Retrieved from https://www.whitehouse.gov/briefing-room/statements-releases/2025/01/07/fact-sheet-vice-president-harris-announces-final-rule-removing-medical-debt-from-all-credit-reports/

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