Hospital Indemnity Insurance | United Healthcare

Hospital Indemnity Insurance | United Healthcare

Hospital Indemnity Insurance

Helps you pay for out-of-pocket expenses that result from a covered hospital stay.

Here's what you need to know

Hospital Indemnity Insurance provides you with a cash benefit you can use to help pay expenses when you have a covered hospital stay.


If you’ve ever been hospitalized, then you already know that your major medical insurance may not pay all of your medical expenses. Whatever remains is what you’ll be expected to pay on your own. Deductibles, copays, out-of-network charges, and other uncovered expenses can add up to big bills, even for a short hospital stay.


That’s where Hospital Indemnity Insurance comes in handy. You can use the cash benefit you receive from this policy to help you cover not just bills related to your medical care, but any other expenses as well.


  • Pays a benefit for you to use however you want
  • The payment is made directly to you
  • It can help pay out-of-pocket expenses related to medical care associated with covered accidents
  • In addition to medical care, you may use it to pay for things like childcare, lodging, or over-the-counter medication


You can collect this benefit in addition to other coverage you have, including your employer’s major medical plan, any other type of medical coverage, disability insurance, or other benefits you may be eligible to collect. However, it is NOT health insurance and does not satisfy the requirement of minimum essential coverage under the Affordable Care Act.

A hospital stay can be costly to your finances in two ways:


  • Medical bills. After being admitted, you have expenses for each day you’re in the hospital – and even a short stay can end up being costly. In addition to the stay itself, treatments, tests, and surgery can add to the cost.
  • Lost wages. Each day in the hospital could mean taking time out of work, or a family member may take time away from their job to help support you. If this impacts the paycheck that your family relies on, you may need to dig into savings or even borrow money. Hospital Indemnity Insurance helps alleviate these worries.  


Since you have the freedom and flexibility to choose how you spend your benefit payment, you can use it to help pay for anything you want. Even use it to help pay regular living expenses such as grocery bills, mortgage payments, childcare, and transportation – all of which could become a concern if you lose income while you’re in the hospital.


Instead of turning to your savings or taking on credit card debt to pay those medical bills, you can use the cash you receive from this policy to help pay them. That means less time spent worrying about money and more time spent focused on getting well again.

You can enroll in Hospital Indemnity Insurance:


  1. Within your new hire enrollment period
  2. If you have a qualifying life event (you get married, have a baby, etc.)
  3. During annual enrollment


Check with your human resources/benefits team for specifics about these timeframes.


Keep in mind: If you enroll during these timeframes, you have what is called "guaranteed issue," which means no medical questions or tests are required to enroll. Pre-existing condition limitations may apply.

How It Works

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You enroll in Hospital Indemnity Insurance

Number two Hospital icon

After insurance is in effect, you have a hospital stay due to covered accident or sickness

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Receive a payment

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Use your money however you want

You’re admitted to a hospital for a covered accident or sickness.

That’s when Hospital Indemnity Insurance comes in.

Because you have Hospital Indemnity Insurance, you get a cash payment you can use for any expenses you want – medical or not.

Frequently Asked Questions

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  • Who is the provider?

    This plan is provided by UnitedHealthcare Insurance Company.
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  • When is a benefit paid under the plan?

    Once your insurance is effective, if you are hospitalized you will be eligible for a benefit. These benefits vary by state and may have other limitations and exclusions that may affect what’s payable. See your disclosure statement or outline of coverage/disclosure document for full details on your coverage.
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  • Who in my family is eligible for this program?

    Members of your family who are considered eligible to enroll for insurance include:

    • You – if you are an active associate
    • Your legal spouse
    • Your eligible dependent children


    You must be enrolled in coverage for members of your family to also enroll. 

  • How much does coverage cost?

    This is group insurance offered at group rates. Refer to the policy documents for complete details. 
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  • Do I have to answer health questions or take a medical exam?

    No, you don’t. Your Hospital Indemnity Insurance is guaranteed issue, which means no medical questions or tests are required to enroll in this coverage. Pre-existing condition limitations may apply.
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  • What if my employment status changes?

    Good news! If you leave or retire from your current employer, you can continue your Hospital Indemnity Insurance without interruption (subject to applicable law and the policy’s terms and conditions). Although payroll deduction will no longer be available, you can opt for other payment methods such as credit card billing or home billing. Higher rates may apply.
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  • When would my coverage start?

    Coverage is effective on the 1st of the month after coverage is approved.
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  • Am I really free to use the payment any way I choose?

    Yes, you are! There are no restrictions or requirements about how you can use your hospital cash benefit. You don’t even need to use it on expenses you incur while you’re IN the hospital – you can also use it for expenses after you’re discharged. You’re free to use this money on anything you choose, including out-of-pocket medical expenses and/or non-medical expenses such as regular monthly bills if you’re out of work. 

Are you ready To Enroll?

Act now to put Hospital Indemnity Insurance in place to help offset expenses that may not be covered by other insurance.

Do You Need Help?

Our team is ready

VB Call Center

M-F 9a-6p ET

Phone Number: 1-800-441-5572