How Supplemental Health Insurance Saves You Money

Supplemental health insurance is not a new concept, but it is not as well known as individual health insurance, life insurance or other types of insurance coverages that protect individuals from catastrophic debt, should the unexpected occur.

Supplemental health insurance is similar to Medicare supplemental insurance, which is strictly for seniors 65 years and older. Like the Medicare equivalent, supplemental health insurance pays for accidental bumps, bruises and illnesses not covered by standard health insurance plans due to high deductibles that require individuals to pay thousands out of their own pockets before the insurance company begins to foot the bill.

Who is the best candidate for supplemental health insurance? With health insurance deductibles rising, millions can benefit from having the protection of a supplemental health insurance policy. Here is an example:

Meet Amy and Brian: Supplemental Health Insurance at Work

Husband and wife, Amy and Brian, have two active, young children. The family has health insurance coverage through Brian’s employer, but their medical deductible is $2,500. The family only has $975 in savings for emergencies, so they would need to put medical expenses over $1,000 on a credit card if they or their children become sick or injured.

One day the oldest child falls out of a friend’s tree house and breaks his arm. He is rushed to the emergency room, and his arm is X-­rayed and set in a cast. The total bill for the broken arm comes in at $4,023 for the ER visit, which includes X­-ray imaging, doctor’s fee and setting the bone. The first $2,500 are Amy and Brian’s responsibility, and then they have to pay 20% coinsurance for all medical expenses after their deductible. So the family owes $2,804.60 out of their own pocket, and the health insurance company will pick up the remaining $1,218.40. If they had a $2,500 supplemental health policy to cover their insurance deductible, the family would receive a lump cash payment of $2,500 once they filed a claim, and the remaining $304.60 would be the only amount they would have to pay out of their own wallet.

Bundled Benefits

Unlike companies that just sell accident, cancer or critical illness policies, supplemental health insurance combines multiple insurance coverages into one, taking the guesswork out of which policy to buy. With supplemental health insurance you get accident, critical illness and accident disability income all bundled into one insurance policy. Some organizations like HealthValues also offer added extras to help keep medical savings low, like free doctor consultations, preferred pricing on X­-rays and surgeries, and expert medical bill negotiation. These added benefits are included in the price of supplemental coverage, and can save individuals and families hundreds of dollars on typical medical expenses not normally paid by health insurance due to a high deductible.

Get more information about membership in HealthValues today, and start saving on health care.