Hospital Services: Observation and Inpatient
Defines UnitedHealthcare's policy on when hospital observation-level care is appropriate, referencing InterQual criteria and listing common conditions managed on observation; indicates applicability exclusions for certain states and obstetric members and states expectation for documentation if observation exceeds 48 hours.
12/01/2025 Coverage Rationale removed language indicating observation services are considered medically necessary for a member who requires short-term monitoring of at least 6 hours with improvement expected within 24-48 hours and at least one of listed care elements.
04/01/2026 Template Update removed content/language pertaining to the state of Louisiana.
Coverage Summary
Overview: This policy (Policy Number CS356.D, status CURRENT) defines UnitedHealthcare's approach to observation level of care for hospital services. UnitedHealthcare uses InterQual® criteria as a source to support medical necessity and level-of-care decisions, applied alongside independent clinician judgment. The policy provides guidance for observation-level care, lists common conditions often managed on observation, excludes obstetric situations, and requires that if observation extends beyond 48 hours additional clinical information be submitted to support inpatient level of care. Effective date: 2025-12-01; Last review: 2026-04-01.