SUPPLEMENTAL Insurance Policy
Having health insurance does not mean that all health related matters are completely covered under your insurance plan. For some, it makes sense to purchase a supplemental insurance policy to help cover the gaps in traditional health insurance policies. If you are considering purchasing supplemental insurance, here is some information to help you make the best decision for your situation.
First of all, it is important to understand what this type of insurance is. Supplement insurance is designed to pick up coverage that is not typically offered by traditional health insurance. Many common examples of supplement insurance include dental, vision and disability insurance. These provide for insurance needs that are not often included, or completely covered, in most health insurance plans. Also, people who have high deductible health insurance can purchase a supplement policy to help pay the difference in what is not covered between the insurance and the deductible.
Most supplement policies are utilized after primary insurance pays. For example, if you have a health insurance policy that pays 80% of your health care costs, you will be left to cover the other 20%. So, if you have to go to the hospital, the primary health insurance company will pay 80% of the bill, and if you have supplement insurance, they will take care of a large portion of the 20% left for you to pay.
Many senior citizens who receive Medicare purchase Medicare supplement policies to bridge the gap in health insurance coverage. This population represents a large group of the supplement insurance industry.
When utilizing supplement insurance with a health insurance plan, always file the claim first with the primary insurance. After it has paid, then file the claim with the supplement insurance to pay the remainder. Because health insurance does not typically pay dental and vision claims, you would submit these claims directly to the supplemental company for payment.
Supplement insurance is a great benefit to those who have high deductible plans or other large gaps in insurance coverage. It makes more sense to pay a small premium once a year for a supplemental policy to help bridge missing coverage than to pay more each month in higher health insurance premiums. Most importantly, having a supplement policy will ensure you will be covered in the event of an unexpected health emergency.