Group health insurance rates have been increasing year after year. Employers are being forced by changes in recent laws to make drastic changes in employee benefit programs. Many employers have changed their health insurance to high deductible plans in order to keep premiums affordable for employees. Disability programs and group life insurance have been trimmed down minimal amounts of coverage. This creates gaps in coverage. Employees will look for alternatives to what has been omitted or decreased in their benefit package. The answer to this problem has come in the form of supplemental health insurance. Supplemental medical insurance companies enroll the employer’s employees and then the employees pay premiums through payroll deduction. With many carriers employees are also able to keep the plans even if they leave the employer. It is a great benefit to employees to have this portability in their gap coverage.
A Few Of The Supplemental Medical Insurance Products
1. Disability Insurance – Supplemental disability insurance is sold to employees to fill in gaps or replace lost benefits. Long term and short term disability insurance is purchased with a variety of waiting periods and benefit periods.
2. Life Insurance – Supplemental life insurance includes a variety of permanent plans as well as term life insurance. There are non-medical life policies available for larger groups when a certain amount of employees participate in the plan.
3. Dental Insurance – This is one of the more popular supplemental health products because it usually the first discontinued by the employer.
4. Cancer Insurance – The cancer policy is a single need policy with relatively low premiums.
5. Accident Insurance – The accident policy covers accidental injury and death. There are accident disability riders on some accident policies.
6. Hospital Income – The hospital income policy pays a daily dollar rate to the insured while hospitalized. These policies can pay as low as $10 per day and as high as $200 for each day hospitalized.
What Else You Need To Know About Supplemental Insurance
The need for supplemental insurance is stronger than ever before. Rising premiums on health insurance and the rise in deductable in order to keep costs low create gaps in you insurance. People don’t realize how expensive health insurance is until something catastrophic happens to them, and by then it is too late for the supplemental coverage. With supplemental insurance you have the opportunity to pay for coverage that is much lower than premiums for health insurance. The supplemental coverage also pays cash to the individual not the doctor. This allow individuals to use the money as needed.
What happens with health insurance the next few years will either have a greater push towards the supplemental insurance. Or changes will made in policies to adapt to the changes in health care. Either way will lead to greater innovation and support for gaps we may have in our insurance.