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FAQs About Supplemental Health Insurance
Supplemental health insurance can offer peace of mind and help with medical expenses — but do you need it?
Aug 27, 2024
Aug 27, 2024
Your Care
Jacquelyne Froeber
HealthyWomen's Senior Editor
Jacquelyne Froeber is an award-winning journalist and editor. She’ holds a BA in journalism from Michigan State University. She is the former editor-in-chief of Celebrated Living magazine and has editing and writing experience for print and online publications, including Health magazine, Coastal Living magazine and AARP.org.
As a breast cancer survivor, Jacquelyne encourages everyone to perform self-exams and get their yearly mammograms.
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No one wants to think about accidents or illness, but life happens.
And life can get super expensive, very quickly.
Supplemental health insurance can help you pay for out-of-pocket medical expenses that are not covered under regular medical insurance. It can also cover important things like teeth cleanings and help you pay for everyday expenses like food.
So here’s what you need to know about whether supplemental health insurance is right for you.
What is supplemental health insurance?
Supplemental health insurance is – you guessed it – insurance that supplements your primary health plan and helps you pay for healthcare costs that it does not cover.
These costs can include:
- Copays
- Coinsurance
- Deductibles
Read: Health Insurance 101: Understanding Health Insurance Terms >>
What are the types of supplemental health insurance?
There are several different types of supplemental health insurance, including:
- Accident
- Critical illness
- Dental
- Disability
- Hospital
- Long-term care
- Vision
- Medicare supplemental insurance
There are also supplemental health insurance plans for specific conditions. For example, cancer insurance policies can help pay for treatments and expenses if you’re diagnosed with cancer.
These expenses can include:
- Childcare
- Experimental treatment
- Prescription drugs
- Transportation to and from medical visits
Anyone can purchase standalone dental coverage through the federal Marketplace (Healthcare.gov) but vision insurance only comes as part of other plans — and not all plans offer it.
How do you receive a payout from supplemental insurance?
How you receive the benefits of each policy can vary depending on the plan. Some supplemental health insurance policies offer cash over a period of time or a lump sum of money to go toward healthcare or household costs.
Other plans pay a set amount of money for services or cover a percentage, which can reduce the amount of money you owe on medical bills.
Who should consider supplemental insurance?
Supplemental health insurance can be a good option for a number of different reasons.
These can include:
- Having a family history of health conditions, such as heart disease and cancer
- Having a chronic illness
- Being at risk for injuries or accidents because of your age, job or lifestyle
How do I get supplemental health insurance?
Some employers offer supplemental health insurance, and it can also be obtained by private insurance companies.
When can I buy supplemental insurance?
You can buy supplemental health insurance whenever you want. There is no open enrollment time or period of time to consider, but note that there may be a waiting period before your benefits kick in.
It’s also important to be aware that supplemental health insurance is not regulated by the Affordable Care Act, so insurers can deny coverage based on where you live, age, preexisting health conditions and other factors.
If you’re thinking about supplemental health insurance, check the math to make sure the plan works for your budget. And read the policy carefully so you have all your healthcare bases covered.
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