Supplemental health insurance is a type of insurance that many people don’t consider buying, but it could be beneficial for you. This type of insurance potentially covers expenses not otherwise covered by your traditional insurance. However, supplemental insurance is not for everyone, so you should look at your own situation and decide whether it is right for you.
Learn more about supplemental health insurance, how it works, and whether it is a good fit for you.
What Is Supplemental Health Insurance?
Supplemental health insurance is optional insurance that covers gaps or inadequacies in your main health insurance plan. Below are some examples of supplemental health insurance.
Critical Illness Coverage
This benefit covers you if you are diagnosed or hospitalized with a serious illness such as cancer or if you have a heart attack.
Accident coverage pays you a benefit if you are involved in a covered accident such as if you fall and break a bone or are in a serious accident.
Long-Term Health Care Coverage
Long-term health care insurance often covers your care past the time limits of your main health insurance. This insurance may also allow you upgrades or procedures not normally covered.
Medicare or Medicaid Gap Coverage
Your Medicare or Medicaid insurance does not cover all your expenses. Gap coverage fills in the difference between what the government pays for your health care and what your doctor charges.
Hospital Indemnity Coverage
This type of coverage pays you if you are hospitalized for a covered accident or illness. The policy could pay a certain amount per day or a percentage of your actual costs after insurance.
Dental and Vision Insurance
Most insurance plans do not cover dental and vision expenses, and this type of insurance will fill in those deficiencies. However, coverage amounts may vary in terms of deductibles and covered services.
How Does Supplemental Health Insurance Work?
The way this insurance works depends on the company you are contracted with. Some supplemental health insurance pays your doctor or medical professional directly. Other policies will reimburse you for non-hospital, but related, expenses such as travel costs to get treatment.
In many cases, you can have a policy that pays you directly, and you can use that money for anything you want including regular daily expenses.
Why Is Supplemental Health Insurance Beneficial?
Supplemental health insurance is beneficial if you have insurance with a high deductible or you want to ensure that you have money for regular expenses while you are unable to work.
Often, you have great flexibility in how you use your benefits, so the insurance isn’t strictly or directly tied to your health costs. For example, you may be able to use your benefits to hire a housekeeper or a dog walker when you can’t walk very well.
What Are the Drawbacks of Supplemental Health Insurance?
One big drawback of supplemental health insurance is that the Affordable Care Act does not regulate these types of policies. Therefore, you may be denied coverage if you have pre-existing conditions, if you are considered high risk, if you don’t fill out the paperwork correctly, or if you file the claim too late. Some policies also won’t kick in until you have completely exhausted your health insurance policy limits.
With any insurance, compare plans and benefits before making the final purchase. Make sure you examine your current health insurance to reduce the chance of unnecessary duplicate coverage. Also, make sure that the plan actually covers your most probable scenarios and look into whether the plan has other benefits such as payouts for medical screenings.
The staff at Callis Insurance can look over your insurance needs and help you compare and pick out the right supplemental insurance plan for your needs. We can also help you purchase other insurance as well. Contact us at one of our three Washington offices for an appointment and consultation.