When you work for yourself, you may have to budget more for medical expenses. Here’s how a fixed indemnity plan can help.

Are you a freelancer, entrepreneur or gig worker? More and more people are taking advantage of opportunities outside the standard 9-to-5 office life.

But with the lifestyle upgrades, such as flexible hours and you being your own boss, come a different set of concerns.

What if you get sick on the job or need to have surgery? Depending on your business, if you can’t work because you’re sick or in the hospital, you may have to pay someone to take your place. This might mean your income decreases while your labor expenses increase.

One way to help with that financial risk is to sign up for hospital and doctor insurance. You may also see it called “fixed indemnity” or “fixed benefit insurance.” It’s a type of supplemental insurance you pay for in addition to your traditional health insurance, but it doesn’t take the place of your traditional insurance.

Below, learn how fixed indemnity insurance could help if you’re self-employed — and whether buying this type of insurance might be right for you.

Have a high deductible or out-of-network costs? Hospital and doctor insurance can help.

What is hospital and doctor insurance?

Hospital and doctor insurance, aka fixed indemnity insurance, pays out a “fixed benefit” for qualified medical expenses specified in the plan. These could include medical expenses like:

• Doctor visits
• Hospital stays
• Prescription drugs
• Surgeries

For example, if your plan pays a $50 a day benefit for X-rays, and you fall and need to have an X-ray done on your arm, the plan will pay you $50. You might receive an additional, separate cash benefit if you went to your doctor, urgent care or the emergency room.

If you’re self-employed, receiving a benefit may help with your cash flow and cover unexpected medical costs.

What can I use hospital and doctor insurance’s fixed benefit for?

When it comes to fixed indemnity insurance, you get to choose how to use the cash benefit you receive. So, for example, you can use it to pay out-of-pocket medical expenses, such as a copayment (copay). That’s a set amount of money that your health insurance requires you to pay for a covered medical expense. For instance, you may pay a $25 copay for each doctor’s visit.

But the preset amount of the cash benefit is not tied to your actual out-of-pocket expenses. So, you might receive a $40 daily benefit for seeing a doctor but pay only a $25 copay to the doctor. In this case, you would keep the remaining $15 or be able to spend it on something else.

You may also use cash indemnity insurance payments for nonmedical expenses, including business expenses. This includes things like:

• Childcare
• Groceries
• Office rent
• Office supplies
• Transportation to and from your office

There are no restrictions on how you spend the money.

How is hospital and doctor insurance different from health insurance?

Fixed indemnity insurance doesn’t replace your traditional health insurance plan. It’s not health insurance for self-employed people. Rather, fixed indemnity insurance supplements your traditional health insurance plan.

You’ll receive benefits for qualified medical expenses up to an annual or lifetime maximum. The plan will have limitations, unlike regular health insurance. For example, it can exclude preexisting conditions, such as cancer or diabetes. Also, you may be limited to a certain number of specific benefits, such as 1 wellness visit per year or 5 doctor visits per year.

You receive fixed indemnity insurance benefits regardless of other insurance coverage. For instance, you would receive fixed benefit payments even if you haven’t met your health insurance deductible (the amount you pay for out-of-pocket costs for your covered healthcare before your plan begins to pay).

Unlike most health insurance plans, fixed indemnity insurance has no deductible and can typically be purchased at any time of year. You don’t need to sign up for it during an enrollment window.

See how hospital and doctor insurance can help by entering your zip code.

Is hospital and doctor insurance worth my money?

Fixed indemnity insurance tends to have affordable premiums, or a monthly cost. That can make it more attractive if you work for yourself and you’re concerned about what might happen if you get sick or need healthcare services. You’ll also know exactly what benefits you’ll receive in advance. That can make it easier to budget for future health expenses.

Does it matter who my healthcare provider is?

Freedom to choose any doctor, hospital or other provider is one of the benefits of fixed indemnity insurance. Unlike health insurance, which may require you to stay in a specific network to get the best coverage, fixed indemnity insurance isn’t tied to in-network providers.

For example, if you have a sore throat, you can go to any lab to get a test done for strep throat. The benefit for the diagnostic test will be the same in or out of network.

That said, some fixed indemnity plans offer access to in-network discounts, which can help keep your overall medical costs down. Also, keep in mind that you may save money on your out-of-pocket costs by using providers in your health insurance plan’s network.

What features should I look for in hospital and doctor insurance?

When you’re comparing fixed indemnity insurance plans, you’ll definitely want to compare premium costs and fixed benefits. But it’s also a good idea to look closely at limitations and benefit details.

With surgical benefits, for example, some fixed indemnity plans may pay tiered benefits based on the complexity of a surgery, instead of paying a single surgical benefit. A plan may also pay an additional amount if you stay in an intensive care or critical care unit at the hospital. Preventive care doctor visits may be covered, subject to a waiting period. And some fixed indemnity plans may offer additional benefits, such as access to prescription drug discounts.

Compare costs for hospital and doctor insurance by entering your zip code or calling a licensed insurance agent at 1-844-211-7730 to discuss your options.

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:

51860-X-1224