When injuries or diseases strike, supplemental health insurance can be a way of paying for unexpected medical expenses. Even if somebody has healthcare coverage, if they are diagnosed with a serious health condition or are injured, they may face all manner of expenses that are not covered by their health insurance plan. Copays, coinsurance, and deductibles are just some along with additional expenses at home for transportation, childcare and more. An increasing number of companies are now offering supplemental health insurance as a voluntary benefit that is covered by employees. These plans pay cash benefits directly to the employee with the coverage to be used in any way that they see fit.
How Supplemental Insurance Works
Supplemental health insurance is designed to assist with paying for any unexpected costs that may not be covered by regular health insurance. Employees receive cash payments directly from the insurance company based on them being diagnosed, admitted to hospital, or treated for injuries and health conditions that are covered by the plan. It’s usually quite a straightforward process, and the cash can be used by the employee for any costs that they see fit, including for non-medical costs such as buying groceries or paying for childcare, reducing the financial impact of being injured or recovering from an illness.
Accident Insurance
Accident insurance is one of the most popular supplement insurance benefits to offer. It provides benefits for a range of different accidental injuries that require medical treatment, hospitalization or urgent care, including common injuries like fractures and burns. It will also cover a range of treatment and recovery services like transportation in an ambulance or physical therapy. Payouts are based on the treatments that are covered, regardless of whether or not there is a health insurance plan in place to cover some of the costs.
Cancer Insurance
Cancer insurance is a type of supplemental health insurance benefit that pays an employee out with a lump-sum payment upon the diagnosis of cancer. The money can be used for any purpose and is made directly to the employee regardless of any medical insurance coverage that they have. It is designed to help with the cost of diagnosis, screenings, treatment, and any other associated costs the employee incurs throughout cancer treatment.
Critical Illness Insurance
This kind of supplemental health insurance is designed to complement existing disability or medical insurance plans. It provides a lump-sum payment that is made to the employee directly if they are diagnosed with one of a number of different chronic, major and debilitating health conditions like cancer, stroke, Alzheimer’s disease, or heart attack.
Hospital Indemnity Insurance
This supplemental insurance benefit is designed to reduce the financial impact of higher health plan deductibles and other out-of-pocket costs for hospitalization for an employee. It is designed to provide a payout directly to any employee who is admitted to the hospital or an ICU for an injury or health condition that is covered by the plan.
For employers, simply offering health insurance is no longer enough. When it comes to making sure that your employees have complete peace of mind regarding their health, supplemental health insurance benefits can help.