Supplementary Medical Insurance
What Does Supplementary Medical Insurance Mean?
Supplementary medical insurance is additional coverage designed to complement an existing health insurance plan. It is not intended to be used as standalone health insurance. Instead, it fills in the coverage gaps of another medical insurance plan. Typically, individuals should not purchase supplementary medical insurance unless they are already enrolled in a standard health insurance plan. Anyone who does not yet have a primary health plan should first look at how to choose health insurance before considering a supplementary policy.
Insuranceopedia Explains Supplementary Medical Insurance
There are various types of supplementary medical insurance plans. Some plans cover expenses within a regular medical insurance plan, such as deductibles and coinsurance payments. Because a supplementary plan only patches the gaps in your main policy, it helps to first understand the difference between premiums, deductibles, co-pays, and coinsurance so you know which costs you’re actually covering. Other plans provide coverage for services not included in standard medical insurance, like dental and vision care. Additionally, some supplementary medical insurance plans offer short-term coverage for individuals who temporarily lack insurance.
However, supplementary medical insurance does not qualify as acceptable coverage under the Affordable Care Act. If an insured person only has supplementary medical insurance and no other health plan, they will still be subject to the tax penalty for being uninsured.
