Supplement Medical Insurance

2014 Medicare and Medigap Updates

Supplement Medical Insurance

Medical costs can sometimes be very high and it is for this reason people seek health insurance. However, in some instances it is necessary to have supplement medical insurance to go with another insurance policy that does not cover all expenses.

Supplement medical insurance can be described as additional insurance coverage people purchase in order to help pay for medical costs their main medical insurance does not pay for. The typical costs people seek additional coverage for include copayments, deductibles, private nursing, health costs incurred abroad, non-emergency transportation, co-insurance and other out pocket costs.

In addition to paying for most of the out of pocket costs, some types of supplement medical insurance offer cash benefits to pay for lost income during illness, special transportation costs, medication and for other unforeseen costs that may arise.

The most common or well known type of supplement medical insurance is Medigap. Medigap is Medicare supplemental insurance. It is provided by private insurance companies that have been approved by Medicare to provide the supplemental coverage to Medicare enrollees. There are a number of different Medigap health insurance policies numbered from letters A to L. The different policies offer different benefits with different insurance premiums payable. For this reason, when looking for supplemental coverage, it is best to find a policy that will best fill the gaps in your Medicare coverage.

Another type of supplement medical insurance is the critical illness insurance coverage. This type of insurance coverage involves the insurance company paying the insured individual a lump sum cash payment if and when the insured is diagnosed with what is defined as a critical illness in the policy document. Common illnesses that are listed as critical illnesses include HIV/AIDS, Alzheimer’s disease, Parkinson’s disease, multiple sclerosis, diabetes and kidney failure. The lump sum payment is paid in order to pay for treatment and care for the critical illness, pay for lost income or for a lifestyle change due to the disease.

Hospital indemnity insurance is another kind of supplement medical insurance. This type of insurance is supposed to make a cash payment if you are admitted to a hospital as a result of injury or illness. The policy typically pays out if you have been in hospital for a specified number of days. Cash payments can be made at once, daily, weekly or monthly.

It is imperative to keep in mind that supplement medical insurance is just that, it is meant to supplement your regular medical insurance and not to supplant it. You should also critically consider whether or not you need supplementary coverage with your regular insurance as you may end up with duplicate coverage. You should clearly know your supplementary insurance needs and weigh the benefits against the cost of the insurance premiums you will need to pay.