Understanding Supplemental Insurance

Supplemental insurance is not a traditional health insurance policy. As the name implies, it works along with a traditional insurance plan. You need to already have coverage in order to qualify for a supplemental plan. Coverage is provided by private companies and is used to pay healthcare costs that your insurance plan does not cover. Some examples include deductibles, coinsurance and copayments.

Who Needs Coverage?

There are supplemental health insurance plans for families and individuals. There are also options for people who receive Medicare. Your medical needs determine whether or not a plan is right for you. Most people who receive Medicare are encouraged to get supplemental coverage. But anyone else should speak with an insurance agent to determine if supplemental coverage is worth the expense.

Any American younger than the age of 65 should have major medical insurance. In most cases, people in this age range will not need supplemental insurance. An exception is if they have extreme health problems that cause them to exhaust their traditional insurance. Families and individuals have the choice of filling gaps in their health insurance coverage with short term health plans and fixed benefit heath plans.

Benefits

Supplemental coverage is generally recommended for elderly people with Medicare. Medicare covers a portion of a person’s medical expenses. After that, the person is responsible for the remaining expense. The supplemental plan picks up where Medicare stops.

It’s important to note that supplemental insurance is not available in the health insurance marketplace. It does not count as primary insurance under the new regulations and rules of the Affordable Care Act. It is sold by private companies.