How To Determine Extent Of Supplemental Insurance Coverage

Supplemental insurance fills in the gaps of primary health insurance policies. Depending on what kind of insurance you have, you may need to supplement more than others. If you do not want to be hit with unexpected expenses, supplemental insurance should be a strong consideration for you. Here are a few things to consider before you purchase supplemental insurance:

Why Supplemental Insurance?

Some types of medical coverage are notorious for having coverage gaps. One of the most common forms of care that is known for its gaps is Medicare. Medicare allows you to pick a plan that closest fits your needs. However, when you pick one plan, you are giving up benefits of another type. For example, if you have Medicare, all of your medication and doctor visits might not be covered. If you take a lot of pills and you have to see the doctor frequently, you might want to look at a supplemental policy. Supplemental policies are all about limiting the risk that you receive a large bill that you can't pay.

Look at Your Current Plan

The first step to determine whether or not you need supplemental insurance is to look at your policy. There are many policies out there that do not need any supplemental insurance. They cover everything including: medication, doctor visits, surgery, hospital stays, therapy, emergencies and other important services. If you review your policy and it covers everything that you can think of, and then you may not need supplemental insurance. Employer provided insurance sometimes falls into this category.

Assess the Gaps

Review your coverage gaps closely. If the only gap in coverage is medication, it may not be worth the money to pay for another policy. Think about the price of your medication and ask yourself if it is worth it to pay a monthly premium to combat this. If you felt that the most you would ever pay at one time for medicine is less than $1000, then it probably is not worth it. You might save only a few hundred dollars and you would easily pay that out in premiums over a certain period of time.

However, if your policy doesn't cover large-ticket items like outpatient surgery, then you might want to supplement your policy. This type of procedure can cost thousands of dollars. If you were stuck with the bill, chances are you will not be able to pay expensive hospital bills.

Look at Your Situation

Your financial situation also should be looked at to determine how much supplemental insurance you need. If you are on a very tight month-to-month budget, any unnecessary medical bills could put you over the edge. If you have a lot of money in savings, you might not find it necessary to get supplemental coverage. The decision is totally based on your comfort level and your monthly budget.

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