Supplemental Insurance

Supplemental insurance works alongside your other medical insurance. It’s not meant to act as a standalone policy or replace your primary, basic medical coverage. This insurance is for people who need or want help paying medical bills after their usual medical insurance pays for what it will cover.

You’ll pick the type and value of the supplemental coverage, with the policy premium influenced by the insurer and coverage selected. Your supplemental coverage will kick in according to your policy’s terms. Generally, the higher levels of coverage you get, the more expensive the policy premium will be.

There’s a wide variety of supplemental coverage available. Medicare Supplement Insurance, or “MediGap,” offers some cash benefits above what Medicare will for covered services. Some MediGap policies offer coverage for services Medicare won’t cover, like hospitalization in a foreign country. Hospital indemnity plans have set payments for certain medical events, such as hospital visits and outpatient services.

Fixed benefit plans provide a set cash amount for preventive medical care or for costs associated with accidents or certain illnesses, including cancer. Under a fixed benefit plan, you’ll receive the cash amount per incident up to whatever the policy’s limits are. For example, if your fixed plan allows for $75 per doctor’s office visit up to six times each year, you won’t get $75 for the seventh visit in the same year.

The primary benefit of supplemental coverage is the cash you’ll receive for what your selected policy covers. Medical costs can add up fast, and if your insurance doesn’t provide ample coverage or your budget is tight, having money coming in from another source can help protect you financially. This coverage is also beneficial for those with high deductible plans, since you will receive cash benefits for covered services you are paying completely out of pocket for.