Hospital Indemnity Coverage Can Help With Out-of-Pocket Medical Costs

UnitedHealthcare has introduced nationwide new Hospital Indemnity Protection plans that provide a cash benefit to help fund employees’ out-of-pocket medical expenses or meet other financial needs after a hospital stay.

More employers are offering ancillary benefit plans, including hospital indemnity coverage, as a way to add financial certainty for employees, especially with more than 80% of employers now offering consumer-directed health plans (CDHPs), UnitedHealthcare contends. Approximately one in five (21%) employers with more than 500 employees now offer hospital indemnity coverage, according to the Mercer National Survey of Employer-Sponsored Health Plans.

Hospital indemnity coverage gives crucial financial support to employees following a hospital stay, including emergency and non-emergency situations. Following a hospital visit, plan participants receive a lump sum payment ranging from $700 to more than $5,000, which can be used for any reason, including covering everyday living expenses, meeting deductibles or paying medical bills.

UnitedHealthcare’s Hospital Indemnity Protection plans offer greater flexibility for employers and employees, including:

• coverage for hospital and intensive care unit (ICU) admission, hospital and ICU stays, emergency room visits, lodging, transportation and more;
• variable funding arrangements providing cost certainty for employers and the ability for employees to purchase the additional coverage they need; and
• compatibility for people enrolled in consumer-directed health plans with health savings accounts (HSAs).

The Hospital Indemnity Protection plans are available to businesses with 51 or more eligible employees in 45 states and Washington, D.C. Ancillary benefit plans are available as standalone products or in addition to medical coverage.