Supplemental Health Insurance: What It Is and Who Needs It

By now, most people are familiar with the statistic, reported by the National Coalition on Health Care (NCHC), that approximately 46 million Americans do not have health insurance. However, the situation is even bleaker when you look into the facts surrounding those who do have health care coverage. The NCHC also reports that roughly 29 percent of those who do have health insurance are underinsured.

What being underinsured means is that the coverage those individuals have is so meager that they often try to avoid having procedures done because the out-of-pocket costs would be too great for the individual to handle. With 25 million Americans falling into the ‘underinsured’ category, this situation adds to the overall health-care problem that this country faces.

Covering the Gaps

Many people across the country are dealing with these health-care coverage gaps. They may need medical care and then are billed for an expensive deductible or co-pay that they must meet. With the quickly rising cost of health care, it has become increasingly difficult for people to afford their portion of the bill. For many of these people, the answer may lie in supplement health insurance.

If the person has insurance, yet their coverage just doesn’t meet enough of their needs and often leaves them with too much to pay, it is usually more cost-effective for that individual to take out a supplemental health insurance policy. This type of policy will cover the gaps that their other policy may leave. For example, it may help cover expenses that are not covered by Medicare, such as prescription drugs, long-term care, or a nursing home.

Supplemental health insurance may also pay cash benefits if something happens and you need to file a claim. These cash benefits could be used directly to pay for medical expenses, or they may be applied to other related expenses, such as making up for wages lost because of reduced time at work. Regardless of where you apply the funds, they can come in handy during a time of need when there is a medical condition or emergency.

Who Needs Supplement Policies?
The most important thing to remember about supplement policies is that they will limit your out-of-pocket expenses. Their use is not limited to medical care; a supplemental policy can also be taken out for dental care, helping to address yearly dental bills that are not fully covered by the person’s current policy. They are also beneficial for those who use alternative medicine or treatments, such as acupuncture.

If you are one of the lucky ones in this country who have full medical coverage that doesn’t require you to pay large deductibles and co-pays, then you probably don’t need a supplemental policy. However, as employers continue to look for ways to scale back and reduce overhead, many health-care packages are being trimmed. If you are someone who has health care, but it is not a great policy and it leaves you underinsured, or if you are a senior citizen who is shelling money out where Medicare falls short, then this type of policy is ideal for you. It is also good for those who feel that they are at risk for serious illness or hospitalization.

A supplemental insurance policy save you money in the long run, and it will also bring you the peace of mind that comes with knowing that you are covered and that a trip to the hospital will not leave you filing for bankruptcy because your portion of the bill was too great to handle.