Have you heard the term “supplemental health insurance” and wondered what it meant? We’ll break it down for you.

Supplemental health insurance is extra or additional insurance you can purchase for those out-of-pocket expenses that regular insurance doesn’t cover. It is an add-on to current insurance and can cover a wide range of needs in the event of an emergency, accidental death, or extended hospital stay.

Here’s a list of some items supplemental health insurance may cover:

  • Deductibles
  • Copayments
  • Coinsurance
  • Cash Benefits
  • Out of Network Specialists
  • Accidental Death Policies
  • Hospital Confinement Insurance (Also known as Hospital Indemnity Insurance)

This type of insurance is used to cover lost wages, transportation and lodging related to your health condition, to name a few.  They may also be used to cover food, medication, and other unexpected expenses that may pop up due to an illness, injury, or extended stay in a medical facility. It can also be used to cover child care, household help, and normal living expenses such as car payments, utility bills and groceries.

Supplemental insurance is usually no cost to the employer except to implement it in the payroll. There are wide choices available and employees can choose different coverage plans. Before signing up for a supplemental insurance policy ask yourself if you have a way to cover out-of-pocket costs and deductibles in the event of an emergency or unexpected illness. Know what your current health plan will cover. The last thing you want is to double up on insurance payments for things that are already covered.

Before you purchase a supplemental policy, make sure you understand the limitations and benefits listed. Some policies will pay in one lump sum, while others will pay out over a period of time. There may be waiting periods before payments start or contain limits based on how much you’ve paid into it and for how long.

In no way does this type of insurance cover the minimum essential coverage needed for you and your family. This is only additional assistance. Another thing to keep in mind is that the ACA (Affordable Care Act) does not regulate this type of insurance. This means that eligibility is based on medical history and they can impose limits for those with pre-existing conditions or decline coverage.

It’s imperative that you know your insurance options. When you’re in the hospital and trying to get well, the last thing you need to worry about is if your family is being taken care of. Check out your options today.

You want great employees and spend a tremendous amount of time and money recruiting and hiring.  In today’s world potential employees are looking at what YOU have to offer them in addition to salary.   Also, what makes you stand out from other company’s in your field.

Contact our office for a  “no cost” 5 point review of your current Benefits Package or a consultation on what is involved in putting a Benefits Package together.