Supplemental Insurance Policies
When patients use their primary insurance to pay for medical expenses, there are often co-pays and deductibles associated with the policy. Patients have to shoulder the financial responsibility of these costs. In order to afford the costs, they buy additional insurance.
Supplemental insurance is a specialized type of insurance that works in conjuction with primary insurance. It can be referred to as the 'pick-up' insurance because it picks up the tab for medical bills that are left over from primary insurance.
There are various conditions that are covered by supplemental insurance.
- Hospital indemnity.
- Cash benefits for medical services such as emergency hospital vists and outpatient services.
- Payments for out-of-pocket expenses related to illnesses such as cancer, strokes and heart disease.
- Experimental treatment.
- Travel and lodging associated with medical treatments.
- Household assistance and expenses related to caring for children.
- Medical specialists.
- Expenses associated with utility bills, groceries and car payments.
It should be noted that this insurance does not cover every medical condition. It does not cover the majority of a patient's medical costs. Since it is not comprehensive, it can only be used to cover any outstanding medical bills and deductions.
Depending upon the insurance provider, costs related to this additional insurance vary. However, it is usually expensive to acquire. Most people do not need additional insurance because they do not have a lot of outstanding medical bills.
It is important to determine whether the costs of the insurance outweigh the benefits. Factors to include are:
- How often will you use the policy?
- Is the plan easily affordable for you?
- How much are your current out-of-pocket expenses?
It is essential for potential buyers to beware when it comes to purchasing additional insurance. Pay close attention to the fine print and the coverage conditions. In some cases, your primary policy may pay some of the expenses that are covered by secondary insurance. Before signing up for any insurance, buyers need to fully understand the limitations and exclusions of the policy.
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