If you’re hospitalized, you could have some added expenses. Here’s how this type of supplemental insurance can help.

You can plan some hospital stays. Maybe you have a scheduled surgery, or your spouse is giving birth, for example.

But you may find yourself in the hospital unexpectedly. That could be from an accident, an injury or a new diagnosis.

No matter which situation lands you in the hospital, you’ll likely have added expenses — maybe more than you bargained for. That’s where a type of supplemental insurance called hospital indemnity insurance can help ease your financial burden. (There is a monthly premium for supplemental insurance that is not included in what you’d pay for your primary health insurance.)

Is hospital indemnity insurance worth it for you? Let’s first talk about what hospital indemnity insurance is. Then we’ll look at some common examples where having this type of insurance may make sense.

Hospital stays can get expensive fast. Learn how hospital indemnity insurance can help.

What is hospital indemnity insurance?

Hospital indemnity insurance, sometimes called hospital insurance, is a type of insurance that pays you or your provider a preset or “fixed” benefit if you’re in the hospital.

You — or your provider, if you have assigned benefits — receive the payments for qualified hospital stays. For example, a plan may pay a benefit for each day you’re in the hospital up to a calendar year maximum. You may receive a higher benefit amount if you’re in the intensive care or critical care unit.

You may also receive benefits for other medical services, such as emergency room visits or outpatient surgery. The benefit payments are independent of other insurance and not based on actual expenses. For example, your health insurance will process your medical claims separately. What they pay has no effect on the hospital insurance payments to you or your provider.

If you end up receiving the benefit, you can choose how you want to spend the money. You may decide to use it to help pay for:

• Childcare
• Groceries
• Out-of-pocket medical expenses
• Rent or mortgage payments

Common scenarios where hospital insurance may help

Staying in the hospital can be stressful on its own. You may also feel financial pressure from added expenses, ranging from lost income to increased out-of-pocket medical expenses.

Let’s look at 6 common examples where having this insurance to supplement your health insurance may benefit you:

1. You’re self-employed. Whether you’re a freelancer, consultant, contractor or gig worker, being self-employed gives you flexibility. For example, you can drive for a ride-share company, debug computer code or be a freelance writer when you have time.

But if you can’t work because you’re in the hospital, you can’t make any money. Although your health insurance may cover medical expenses, the benefits from hospital insurance could help you pay your day-to-day bills.

2. You have young children. It can take a long time to figure out a childcare schedule and budget that works for your family. But what happens if you have a surprise hospital stay?

You might not be able to instantly pull together a childcare plan with friends and family. Having extra cash on hand from this type of supplemental insurance is great for families, because you might be able to pay for extra childcare when you need it.

3. You own your own business. Maybe you own a business, like a store or a bakery. You’re there night and day working. If you are out for a hospital stay, you don’t want to close the doors. The benefit from hospital insurance may help when you have to pay other people to cover for you.

Want coverage that helps with out-of-pocket expenses? A supplemental plan, such as hospital indemnity insurance, could be the answer. Learn more now.

4. You have a health insurance plan with a high deductible. To lower the monthly bill (premium) for health insurance, you went with a High Deductible Health Plan or HDHP. (A deductible is the amount you pay out of pocket for covered health expenses before your insurance company starts to pay.)

Generally, raising your deductible will lower the premium cost. But if you’re in the hospital, your out-of-pocket costs will likely increase. The high cost of being in the hospital will likely be more than your deductible. The benefit from hospital insurance can help you pay for your out-of-pocket costs.

5. You have an active lifestyle. You enjoy doing extreme sports, like skiing or surfing. You spend more time on the road than at home. When you’re active, you may have a higher risk of accidents or injuries that could send you to the hospital. Hospital insurance may help lower your financial risk if something happens.

6. You don’t have savings for unexpected expenses. Insurance may provide support if events occur that you can’t otherwise afford. If you don’t have savings, hospital insurance may help provide some relief you might not otherwise have access to.

Is hospital insurance worth it?

Whether hospital insurance is worth it varies from person to person. If you have solid savings, always balance your budget and are healthy, it may not seem like it’s worthwhile.

But you could suddenly find yourself in the hospital, wondering where your savings or budget went. That’s why it’s a good idea to plan, even if you don’t think you need to. If you’re still unsure, you can check how much a supplemental hospital indemnity insurance plan would cost you by entering your zip code. You can also call a licensed insurance agent at 1-844-211-7730 for more information.

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.

Compliance code:
51925-X-0225