Learn About Supplemental Health Insurance

Supplemental health plans are a type of coverage that you add onto your existing insurance. These plans may cover anything from hospitalization to critical illness, accidents and more.

Now, you may be wondering, “Why would I need extra coverage if I already have a regular health insurance plan?” As their name suggests, supplemental insurance plans are not meant to be your primary form of coverage.

Instead, they help to close specific gaps that your regular health insurance may have. This is why some people refer to them as “gap health insurance.” Read on to learn how these plans work and when they may be beneficial.

Why Buy Supplemental Health Insurance?

At first, paying a monthly premium for an extra health plan when you already have insurance may seem like an easy way to throw money down the drain. But this couldn’t be farther from the truth.

Depending on your circumstances, supplemental health plans may actually be an affordable way to keep your healthcare costs under control by addressing the shortcomings of your main health insurance plan.

Health insurance has been steadily increasing in price for many years. In fact, healthcare costs in general have grown at a faster rate than the costs for many other essentials, making it hard for Americans to prioritize their health.

In order to keep monthly premiums from ballooning, health insurance companies use certain strategies to keep their plans more affordable than they otherwise would be. Usually, one strategy is to offer less coverage overall.

This strategy usually results in higher copayments, deductibles, coinsurance rates, out-of-pocket maximums, etc. Certain services may not be covered at all. This can make it hard for Americans to afford all the healthcare they need even with health insurance.

In fact, just one unforeseen health emergency or a couple of nights at a hospital can be enough to wipe out a family’s savings, depending on the kind of coverage they have.

Medical gap insurance helps to keep this from happening.

How Does Gap Health Insurance Work?

Supplemental health plans are targeted coverage options that help pay for certain healthcare services. Instead of covering a small portion of many different services, they offer a higher amount of coverage for one specific category.

If you are expecting to have more hospitalizations in the near future, for example, then adding a supplemental hospitalization insurance plan may end up saving you money in the long-run. Likewise, if you worry that an accident could put severe financial strain on you or your family, then supplemental accident insurance may be a good option to consider.

Other types of supplemental insurance include but are not limited to:

  • Critical illness insurance.
  • Heart attack insurance.
  • Cancer insurance.
  • Dental insurance.
  • Vision insurance.

One of the best things about many supplemental insurance plans is that they provide lump-sum coverage.

Unlike regular insurance, which pays a certain amount per service, medical gap plans often give you a lump-sum when you experience a covered event. This lump sum is paid directly to you, so you can use it as you see fit.