What Your Medical Plan Won't Cover
When it comes to our health, most of us rely on health insurance to cover us in case of an illness or accident. However, it's important to understand that the traditional primary health insurance policy only covers some things.
These policies are based on a cost-sharing concept where you and your family are expected to share the expenses with the insurance provider. This is why many people choose supplemental insurance to help cover the expenses that traditional health insurance plans don't.
Your primary health insurance may pay a portion of most treatments, even expensive ones like cancer care and stroke recovery. However, you will likely share some of that burden through copayments.
Copayments provide a set amount that you must pay out-of-pocket for different expenses. For example, your policy could require a $50 copayment for every doctor’s visit. If you have a chronic illness, you may be in and out of the doctor's office for months.
Coinsurance is the percentage you pay for a covered medical treatment after you’ve met your deductible. For example, you may have to pay 50% of the cost of an inpatient stay. If you become ill and need to have an inpatient stay for several days, that cost will add up. If your policy has a high out-of-pocket expense maximum, you'll pay up until that amount.
Sometimes, people choose a high-deductible health plan (HDHP). To help offset higher deductibles (the out-of-pocket cost before insurance begins to pay), many people will use a health savings account (HSA). However, that money can go fast if you get sick.
If your policy has a deductible of thousands of dollars, you will pay at least that amount if you become ill. At that point, you may have to cover a coinsurance fee or a copayment, so there is added expense.
Traditional health insurance plans focus only on medical expenses, which is only half the battle sometimes. If you get cancer, for instance, you may have travel expenses to worry about for treatments. Primary health insurance sometimes doesn’t cover the costs of getting to your therapy if you need to travel to another city.
Supplemental insurance can be a great help in easing the financial burden related to healthcare expenses. There are supplemental health insurance benefits that help cover a variety of expenses that a traditional medical insurance plan may not cover, such as copayments, coinsurance, and out-of-pocket expenses.
An affordable health insurance supplemental plan can help cover the costs left by your regular health insurance, so you don't have to worry about it. It may provide a sense of security in case of unexpected health issues, allowing you to focus on getting better.
This blog is up to date as of November 2023 and has not been updated for changes in the law, administration or current events.