Supplemental insurance
Supplemental insurance — for the gaps your main coverage leaves behind.
Major medical insurance — Medicare, Medicare Advantage, ACA marketplace plans — handles the bulk of large medical bills. Supplemental insurance handles the smaller costs that add up: deductibles, copays, time off work, transportation, the things insurance forms don’t itemize.
What supplemental insurance is — and isn’t
Supplemental insurance is not a substitute for major medical coverage. You can’t use it instead of Medicare, ACA, or employer health insurance, and it won’t satisfy any coverage requirements.
What it does is pay you a benefit (usually cash) when something specific happens — a hospital admission, a covered accident, a covered illness diagnosis, a death — that you can use however you want.
Common types of supplemental insurance
- Hospital indemnity insurance. Pays a fixed daily benefit for each day you’re admitted to a hospital, on top of whatever your main plan pays. Useful for filling Medicare or high-deductible plan gaps.
- Accident insurance. Pays a lump-sum benefit if you’re injured in a covered accident. Helps with ER copays, follow-up care, and lost income while you recover.
- Critical illness insurance. Pays a lump sum on diagnosis of a covered serious illness — heart attack, stroke, cancer, and others. Useful for non-medical costs like travel to a specialty hospital, modifications to your home, or replacing income while you’re treated.
- Final expense (burial) insurance. A small permanent life insurance policy designed to cover funeral and end-of-life expenses for your family.
How it interacts with Medicare or ACA coverage
Supplemental policies pay benefits independently of your main health plan. The hospital bills your major medical insurance; your supplemental policy pays you directly. There’s no coordination of benefits to worry about.
How we help
A licensed El-Mag agent helps you figure out whether supplemental coverage actually makes sense for your situation — sometimes it does, sometimes a higher-tier major medical plan is the better answer.
Explore supplemental options.
