If you have a high-deductible health insurance plan, it can mean higher out-of-pocket costs when you need care. See how supplemental coverage may help.
High-deductible health plans (HDHPs) are a type of health insurance. They often have lower monthly payments, but higher deductibles, the amount you pay for covered health care services before your insurance plan starts to pay.¹ You spend less each month, but more when you need care.
This is where supplemental insurance may help. Pairing an HDHP with a supplemental plan may lower your out-of-pocket costs. Here's how these plans can work together and options to consider.
What is the relationship between an HDHP and supplemental insurance?
HDHPs usually have higher deductibles than traditional health insurance plans. This means you pay more out of pocket before your plan starts to pay for the cost of covered health care services.
Supplemental insurance may help fill that gap. These plans pay cash benefits when certain health events happen.²
These plans may help cover:
- Accidents
- Hospital stays
- Serious illness
- Dental care
- Vision care
Supplemental insurance does not replace your main health insurance plan. It can, however, help with costs before you meet your deductible.
How does supplemental insurance work with an HDHP?
Supplemental plans pay benefits in different ways. Some pay a lump sum. Others pay in a series of payments.²
These payments are fixed. This means they pay a set amount per covered service or up to a set amount for a combination of covered services.
For example, if you break a bone and have to be seen in the emergency room, your plan may pay $1,000 for an emergency room visit for an accidental injury. You can use that money for many costs, such as:
- Emergency room or other medical bills
- Transportation
- Groceries
- Childcare
- Lodging
You’re not limited to medical costs. This flexibility can make it easier to manage daily expenses while you recover.
Accidents happen — and costs can add up. Call a licensed insurance agent at 844-306-8319 to see how accident insurance may help.
What supplemental insurance plans can help cover unexpected health costs?
Certain supplemental health plans are designed to help with the added expenses that can follow a sudden health event. Learning about the main types can help you understand your options.
Accident insurance
Accident insurance helps cover costs if you or a family member gets hurt. It pays cash benefits for accidental injuries.
These plans may cover serious injuries, as well as more common ones, such as a broken bone, burn or concussion.
This type of plan may be helpful if you have an active lifestyle, have young children in sports or just want added help with out-of-pocket expenses for potential injuries.
Hospital indemnity insurance
Hospital indemnity insurance pays a set amount if you are admitted to the hospital. For example, it may pay a fixed amount for each day you stay.
You can use this money for:
- Copayments (set fees for care) for your primary health insurance
- Deductibles for your primary health insurance
- Other hospital-related costs
You can also use the money for daily expenses like rent or childcare. This can help if you are unable to work.
Critical illness insurance
Critical illness insurance pays a lump sum if you are diagnosed (usually for the first time in your lifetime) with a serious illness. The payment is made directly to you.
Covered conditions may include:
- Heart attack
- Kidney failure
- Cancer
- Stroke
- Major organ transplant
This coverage can help with high costs linked to serious illness. It can also help pay for travel, care at home or other needs.
Dental care isn’t always covered by an HDHP. Call a licensed insurance agent at 844-306-8319 to learn how supplemental dental coverage can help.
How can supplemental plans help with routine health costs?
Supplemental plans are not just for emergencies. Some can also help cover routine care that an HDHP may not fully cover.
Dental insurance
Dental insurance helps lower the cost of dental care. Many plans cover three types of services:
- Preventive care: Checkups, cleanings and X-rays
- Basic services: Fillings, non-surgical tooth removal and care for pain
- Major services: Crowns, root canals, surgery and bridges
Vision insurance
Vision insurance helps cover eye care and vision materials.
This may include:
- Glasses or contact lenses
- Routine eye exams and vision tests
How to choose supplemental coverage options
The plans you consider may depend on your needs and any gaps in your HDHP. Reviewing a few key points can help guide your decision.
- Review your health and family needs. Think about age, lifestyle and current health.
- Check your savings and out-of-pocket costs. This helps you plan for possible expenses.
- Ask questions about your coverage. For example: “What are my total costs?” and “What risks should I plan for?”
- Review plan details. Look at how benefits are paid, what is not covered and how claims work.
Frequently Asked Questions (FAQs)
Q: Can I have an HSA and supplemental insurance?
Yes. A person with an HSA-qualified high deductible health plan can also have certain types of supplemental coverage.³ Plans like accident, vision and dental coverage are often allowed.
Q: Is supplemental insurance worth it if I’m healthy?
It can be. Even healthy people can have accidents or need hospital care. Supplemental coverage can help lower your out-of-pocket expenses.
Q: How do I file a claim with a supplemental plan?
You usually submit proof of the health event and your insurance details. Once approved, the plan pays the set amount. This can help you get fixed benefits quickly when needed.
Have questions about which supplemental plans to pair with your HDHP? Call a licensed insurance agent at 844-306-8319 to speak with a licensed insurance agent.
For informational purposes only. This information is compiled by HealthMarkets Insurance Agency and does not diagnose problems or recommend specific treatment. Services and medical technologies referenced herein may not be covered under your plan. Please consult directly with your primary care physician if you need medical advice.
