What is Supplemental Insurance?
As the name suggests, this type of policy supplements existing insurance coverage that pays for medical expenses. In other words, the plan covers anything that is not included in coverage offered by third-party insurance that specialize in health care.
Who it is For?
Supplemental Insurance is designed for people who receive some sort of government-sponsored benefits for health care. There are two categories of individuals who can qualify for this type of financial package. The first category includes retired individuals who are entitled to receive benefits for health care. The second category consists of people who have low incomes and qualify for government-sponsored subsidies on medical services.
How it Works
In order to purchase supplemental coverage, there already has to be an existing insurance plan for health care. After all, the supplemental package is designed to extend a policy that’s effective with limited terms. A monthly payment has to be made to the company that offers supplemental extension. Deductibles are usually not included in the bills because this type of insurance is fundamentally designed to eliminate any co-payments.
Different Types of Coverage in Existence
Prescription drugs are covered under a supplemental policy that’s designed to include various tiers of generic and brand-name medication. With a supplemental policy, a patient visiting a doctor’s office does not bear the responsibility of paying for co-payments. If there’s a need to see a specialist, a referral is not necessary for an insured individual. In fact, visits to out-of-network specialists are covered when supplemental plans are activated. Government-sponsored coverage on hospitalization may be limited, so supplemental policies essentially extend the coverage of inpatient services.
People who have supplemental-style insurance don’t have to worry about meeting the gaps between medical bills and the limited coverage that’s provided by government subsidies. A lot of money is saved on prescription drugs as well as visits to experts who work in any health care network. This type of insurance coverage provides the freedom to schedule appointments with experienced medical experts who can provide second opinions on serious illnesses or cancers that are suspected.