Shopping for health insurance can open up a wide variety of options for individuals and families to choose from, and you may not realize there’s more out there than the traditional major medical health insurance plans. In a market where some have been priced out of traditional health plans, you might consider other types of supplemental insurance products available to you.

What are supplemental insurance products?

Supplemental insurance plans are different from major medical health insurance plans. They will not protect you from the individual mandate’s penalty for not being insured, but they can be paired with a major medical health insurance plan in order to give you more benefits. Please note that on the federal level, the individual mandate penalty has been phased out starting with the 2019 plan year. 

However, some states may still require you to have qualifying health coverage, or you’ll pay a penalty with your state taxes. Supplemental insurance plans are sometimes referred to as ancillary benefits, and they can be bought independently from a health insurance plan, or in addition to one. You can even decide to purchase a “package” of bundled together health insurance products. This may be a more affordable option for individuals and families looking to get health coverage that doesn’t break the bank. 

There are certain situations when it may be helpful to consider supplemental insurance plans. You might choose to get supplemental insurance to fill gaps in coverage – for example, while you’re waiting for health coverage under a new job to kick in. Or, you might choose supplemental insurance plans to make sure you’re covered in a “worst-case” scenario. Supplemental insurance plans may also be a good alternative if you’re not able to afford major medical coverage, or you’re trying to enroll in a health plan outside of Open Enrollment and don’t have a qualifying life event.

What types of supplemental insurance products are available?

The types of supplemental insurance plans available to you may vary depending on your location. Some examples of supplemental insurance plans include:

• Dental insurance
• Vision insurance
• Short-term insurance
• Critical illness insurance
• Accident insurance
• Prescription discount programs
• Telemedicine

As a long-time trusted insurance broker, eHealth’s licensed insurance agents can walk you through different types of supplemental insurance to find plans that work for you. Simply call us at the number on this page to gets started. And, in the meantime, here’s a quick overview of each of these types of supplemental insurance plans.

Dental Insurance

One type of supplemental insurance you’re probably familiar with is dental coverage. Your dental health is incredibly important, and many people don’t realize that oral health is directly linked to overall health. Ignoring your oral hygiene can result in a host of more serious problems. A dental plan provides easy access to preventive dental care, which can help you and your family avoid further oral issues. Most plans cover costs like routine cleanings, oral exams, X-rays, fillings and more.

Vision insurance

Vision insurance is a type of supplemental insurance coverage that you don’t think about until you need it. Vision coverage helps with costs like routine eye exams, contacts, eyeglasses, lenses, and more. Depending on your plan, you may owe a copayment or coinsurance. Please note that eye-related conditions such as glaucoma or cataracts are usually covered under a major medical plan, not supplemental insurance plans such as vision insurance.

Short-term insurance

Short-term insurance can be a good option if you’d like some coverage for a short, temporary period, or if you’re generally healthy and don’t need really robust coverage. Plans usually cover services like certain prescription drugs, ER services, and office visits that aren’t related to pre-existing conditions. Some benefits of short-term coverage include:

• You can enroll at any time.
• Coverage starts more quickly, usually in 1 to 14 days versus 2 to 6 weeks for major medical plans.
• Premiums are usually more affordable than major medical plans.

Short-term insurance can be helpful in certain situations. For example, if you:

• Want coverage outside of Open Enrollment and don’t qualify for a Special Enrollment Period
• Can’t afford a major medical health plan.
• Are waiting for other coverage (such as job-based coverage) to start.
• Were laid off and need coverage while in between jobs.

Keep in mind that short-term coverage doesn’t meet minimum coverage standards under the Affordable Care Act and won’t protect you from tax penalties. In addition, short-term plans aren’t guaranteed, meaning you can be denied coverage because of pre-existing conditions.

Critical illness insurance

Having a health care plan that pays for your health care needs is only half the equation. In the event that you have a serious illness such as a stroke, heart attack, or cancer, you want to make sure those costs aren’t coming out of your pocket. This is where a supplemental insurance plan like critical illness coverage can provide a welcome safety net. 

Typically, critical illness plans either provide coverage for a single illness or a range of conditions (such as cancer, stroke, etc.). Working alongside basic health care coverage, you critical illness plan pays out a lump sum, which ranges depending on your level of coverage.

Accident insurance

Similar to critical illness insurance, accident insurance is a type of supplemental insurance that covers you if you’re severely injured in a “worst-case scenario.” Coverage details vary by plan, but accident insurance may cover serious illnesses such as burns, paralysis, or loss of limb. If you get this type of supplemental insurance, your plan may cover costs like emergency room services, ambulance or hospital transportation, or inpatient services.

Prescription discount cards

Prescription discount cards are a popular way to save money on medication costs that might not be covered by your base health care plan. Getting discounts on your prescriptions drugs can end up saving you money in the long-term, especially if you or your family takes a lot of prescription medications. Keep in mind that prescription discount programs are not the same as prescription insurance and won’t cover the complete cost of your medications. Also, this type of supplemental insurance coverage usually requires you to fill prescriptions with participating pharmacies.

Telemedicine

With the growth of mobile devices and the busy lives of today’s Americans, it’s natural that telemedicine has sprung up to address these changing needs. Telemedicine lets you receive personalized care any time of the day or night from the comfort of your own home. For patients who lack reliable transportation to get to doctor appointments, or who may feel too sick to go in person, telemedicine can be an accessible and convenient alternative. 

A supplemental insurance plan that covers telemedicine may include a range of services, such as video check-ups and “e-visits”; nurse hotline or messaging services, and more. For a small monthly fee, you can add telemedicine to your base health care plans and know that peace of mind that is only a phone call away.

How much does supplemental health insurance cost?

Supplemental health insurance is intended to pay co-pays and other costs that your primary insurance plan doesn’t pay. However, it is essential that you choose the right plan if you expect it to provide savings. 

The average cost of supplemental health insurance varies significantly, depending on your specific situation as well as the type of supplemental insurance you opt for. 

What’s the best way to buy supplemental insurance plans?

Depending on your needs, you can always choose to buy supplemental insurance plans separately, making it easy to customize products to fit your needs. As another option, some insurance brokers offer “medical insurance packages” to simplify the process of buying multiple supplemental insurance plans. 

Also known as “packaged medical insurance,” these bundled products are not major medical health insurance—but that doesn’t mean you won’t get comprehensive coverage. Instead, these bundle packages are made up of several types of supplemental insurance products to cover all the major bases. eHealth sells medical insurance packages that can help with catastrophic medical costs, out-of-pocket costs, and routine preventive costs. You can also add great benefits like telemedicine, dental, vision, and discount cards for prescriptions drugs. 

For some people, this option could be more affordable than purchasing a single major medical health insurance plan. As a broker, eHealth makes the process of buying multiple supplemental insurance products easier, by bundling them together into one pre-selected package. 

One of the biggest benefits of buying supplemental insurance products in a bundle is that you’ll fill out a single application instead of separate applications for each insurance product. However, you can always choose to buy supplemental insurance plans separately if you’re not interested in getting every product in a medical insurance package.

Who should get supplemental medical insurance?

There are many instances in which specific individuals should purchase supplemental medical insurance. First of all, many people over the age of 65 who are on Medicare need to purchase some type of supplemental medical insurance to keep their out-of-pocket costs to a minimum. Unfortunately, Medicare alone doesn’t cover as much as many people may think, so without a supplemental health plan, members could end up paying quite a bit for medical care. 

Another person who could benefit from purchasing supplemental medical insurance is someone who has an insurance plan that provides only minimal coverage. If the supplemental health plan is affordable enough and provides enough coverage, then an individual could end up saving significantly on medical costs by purchasing dependable supplemental coverage. 

If you have some expensive dental work coming up soon, then it might be very wise to invest in supplemental dental coverage. This could dramatically decrease what you’re required to pay out-of-pocket, depending on the plan that you opt for, so be sure to research your options carefully. 

Can you claim supplemental medical insurance on taxes?

When it comes to filing supplemental medical insurance on your taxes, it is usually allowed as a qualified health expense. As long as you choose the itemization option on your income tax return, you can claim your supplemental medical insurance, and also, if the total cost of your healthcare costs exceeds 7.5% of your AGI. If you’re still confused about what to claim on your income tax return, be sure to consult with a tax professional who can provide you with advice. 

Is supplemental health insurance worth it?

For some people, purchasing supplemental health insurance is definitely worth it. Such a person may seek frequent medical treatment, and having an affordable supplemental insurance plan could possibly save the person substantial amounts of money. 

On the other hand, if a person doesn’t see the doctor frequently and their supplemental insurance rates are costly, then it may not be worth it at all. Obviously, it depends on your specific situation and what you’re looking to get out of your health insurance as to whether it’s worth it or not, so be sure to shop around carefully. 

What are some additional ways to save on medical costs?

Medical costs can be astronomical, especially for people who have chronic health conditions and who need to see their doctor and undergo tests and procedures frequently. If you are an individual who makes frequent visits to doctors and you’re considering purchasing a supplemental health insurance plan, then you are likely searching for as many other ways to lower your healthcare costs as possible. 

Another way that individuals are able to lower their healthcare costs is by opting for telemedicine visits. Although these types of visits aren’t appropriate for every type of health issue, if you have an illness that a telemedicine doctor can successfully treat, then you could save significantly on your costs. Not only will your costs be approximately half of what you would pay to see your doctor in person, but since it’s not necessary to leave your home, then you could also save on the cost of traveling. 

Health discount cards are another great way to save on your overall health insurance costs. However, it depends on your specific health insurance as well as which health discount card you choose. Be sure to research all the health discount cards that are available so you can choose the one that would work best for you and your situation.

Find medical coverage that works for you

Supplemental health insurance doesn’t protect you from state penalties for not having qualifying health coverage. 

However, if you need medical coverage to “bridge the gap” until you’re able to get major medical insurance, there are many types of supplemental insurance plans out there. Whether you want to buy a single supplemental insurance product or a medical insurance package, eHealth has you covered. 

Even if you have major medical insurance, you might choose to fill coverage gaps by adding additional insurance products to your base health-care plan. Remember, health insurance costs are regulated, so you’ll never pay more at eHealth than you would anywhere else. Taking the time to shop and compare costs makes it more likely you’ll find the coverage you need at the best price for your budget. Find out what options you have for ancillary products like dental and vision, or check out the individual and family plans for major medical coverage options. If you need help along the way, eHealth’s trusted licensed insurance agents are available by phone or chat to walk you through your options.