Supplemental insurance is usually a sidekick to your main health plan. Supplemental insurance is typically a form of extra health coverage purchased outside of your main health policy. It will pay out-of-pocket medical expenses not covered by the main policy. There are many different types of supplemental insurance available. They can be purchased privately and you can buy them through an employer, if you offer health benefits.
Most Supplemental Insurance policies pay for illness only. A few will pay for both missed work days and illness. These types of policies are called “all-occurrence” Supplemental Insurance. The word “alloccurrence” means that if you have had an illness during the specified time period, you are eligible to receive a percentage (or an entire cash benefit) for any illness that you have suffered from.
Some supplemental health insurance policies pay a specified percentage for both missed work days and sick days. They will also pay a specified amount for “out-of-pocket expenses” that you have incurred. Out-of-pocket medical expenses are those costs that you will have to pay out of pocket, such as deductibles, co-pays, etc. Be sure to carefully read the terms and conditions of the policy you are considering. You want to make sure that you will be able to pay the deductibles and co-pays in the event of a claim.
The most common supplemental insurance policy is called a “part b deductible”. A part of deductible is the maximum amount of money that you will have to pay out-of-pocked before your provider takes over the rest of the cost. Usually, you will have to choose this amount when buying your health plan or getting quotes. The good thing about a part b deductible is that it helps you save money on deductibles and co-pays, but you must take the time to compare what you can afford with what your provider will offer.
Another popular type of supplemental coverage is “critical illness coverage”. This type of coverage pays the same percentage of your claim as your regular medical insurance does for a variety of different medical problems. For instance, if you have an accident that makes you disabled and unable to work, you will have to pay a certain percentage of your claims before your coverage kicks in to help you make up the difference. However, you must be very careful not to miss any claims because this will start to get expensive. If you have a history of critical illness, this could prove problematic because once you go diabetic or become anemic, these rates will jump dramatically.
Another popular type of insurance policy is dental coverage. While dental costs can seem high, there are a lot of ways to get additional dental coverage at a discount. For instance, if you are employed and your employer offers health savings account (HSA), then you can put money into this account in addition to your dental plan. You will enjoy a cash benefit through your HSA each time you take care of yourself with the help of a new or used pair of dentures or a clean smile.
One policy that many people forget to purchase is an “out-of-pocket” policy. These policies allow you to save money on deductibles and premiums without having to pay out-of pocket costs. They do, however, come with a high deductible. The deductible is the amount you will be expected to pay at the beginning of the policy. The lower your deductible is, the less money you will have to spend each month on deductibles and premiums. Out-of-Pocket expenses are those expenses that you will have to pay out of your own pocket, so it’s always better to choose a high deductible.
As a final note, remember that both HSA and supplemental health and life policies will not be affected by the recent health care reform law. So if you currently have a plan and you think you may need to switch companies, talk with your current provider first. They may be able to offer you a more affordable care act coverage option. If you are currently covered, don’t worry, you can always buy another plan to replace your existing plan.