You can fortify your finances against huge medical costs by buying or getting a medical insurance policy. You may have medical insurance through your employer, individual policy on your own, enrolled in the government supported medical insurance plans based on your age or financial condition etc. There are so many different types of health insurance plans and all of them have different types of coverage. You can also buy an additional health plan to supplement your main health plan. If for some reason the benefits of your plan are not enough a supplemental health plan will provide that extra coverage.
Reasons for Buying Supplemental Insurance
- If current primary health insurance plan benefits not enough. Employer sponsored plans may just cover the basic medical needs.
- Your main plan serves your local area and you have to travel to other states where there is no coverage from your plan
- Supplemental plans cover the additional expenses of primary plans like for Medicare Part A and Part B.
- Some supplemental plans cover loss of wages due to prolonged illness or mortgage payments.
- These plans provide health insurance coverage when your primary insurance is lost due to loss of employment etc.
- Additional security gives more peace of mind.
Types of Supplemental Insurance
Supplemental health insurance can come in various forms. Some could cover specific benefits or meant for specific purposes or be of a general nature covering many benefits or out-of-pocket expenses of other plans.
- Medicare Supplement Plans
These are the most popular supplementary plans. They are to be used with Original Medicare plans, Part A and Part B. They cover some of the benefits that Original Medicare does not cover like, foreign travel medical emergency. The copayments, deductibles and coinsurance amounts of Part A and Part B are also covered by these plans.
- Critical Illness Insurance
These plans cover specific medical conditions. The treatment for such conditions is very expensive and long-drawn. The plans cover the treatment expenses for those conditions only.
- Accidental Death or Dismemberment Policy
This policy pays a lump-sum amount to the beneficiary of the policyholder in the event of his/her death or loss of limb, eyesight etc due to an accident.
- Hospital Indemnity Insurance
These plans pay hospital expenses only paid out in weekly payments or one lump sum amount.
- Short Term Policy
These policies cover a range of benefits but are limited to a short span of time.
- Dental, Hearing and Vision Plans
These cover specifically cover services or products related dental care and vision care or hearing.
SusupplementalInsurance and Obamacare
You need to remember that supplemental insurance does not comply with Obamacare regulations. They are not supposed to cover the minimum essential benefits as per the Affordable Care Act. You will have to pay the penalty for not having medical insurance if you have some kind of supplemental insurance only. These plans are also not sold in the health insurance marketplace and have to be bought from private insurance companies. For Medicare supplement plans, you need to have Original Medicare first.
Which supplemental insurance and how much you should buy entirely depends on your personal needs. So you need to take this decision after assessing your own situation.