Other Types of Coverage
There are other kinds of health insurance coverage
called supplemental or alternative plans that are usually
an addition to your regular health insurance coverage. Here's
a brief summary of the various types.
Hospitalization Policies
Hospitalization health insurance policies are sometimes
known as "basic" health insurance plans. These
health plans provide coverage for cases of hospitalization
from certain medical conditions. The benefits cover most
hospital related costs including room & board, surgical
& non-surgical services, etc. Most plans don't require
any deductible. But these types of health plans are NOT
meant to be substituted for regular health insurance plans
because they provide benefits for a limited amount and only
for specified illnesses or health conditions.
Most hospitalization insurance policies only
provide benefits up to a certain limit. If your medical
costs exceed this limit, you may end up paying out-of-pocket
for further costs unless you have other insurance coverage
too.
Catastrophic coverage
Catastrophic health insurance coverage provides
additional protection to healthcare plans with low lifetime
limits. They provide the coverage needed in case of a catastrophic
illness that could save you millions in hospital bills.
The deductible is high - maybe about $10,000 - but these
plans have a maximum lifetime limit that should cover all
costs of a serious illness or condition. Again, these plans
are NOT meant to be substituted for regular health insurance
coverage because they provide limited benefits for only
specified illnesses or medical conditions.
Specified or Dread-disease policies
Specified health insurance policies only provide
benefits for certain disease(s) (such as cancer or heart
disease) specified in the policy. These policies provide
benefits only if you get the specific disease or group of
diseases named in the policy. Again, these plans are NOT
meant to be substituted for regular health insurance coverage
because they provide limited benefits for only specified
illnesses or medical conditions.
Hospital indemnity insurance
Hospital indemnity insurance policies provide
a certain amount of cash benefits for each day up to a specified
number of days that you are hospitalized. You receive these
cash benefits directly which you can then use for any desired
purpose. These plans are considered a supplement for expenses
not covered by your other insurance policy. Certain limitations
might be included such as: pre-existing conditions or a
elimination period (benefits will not be paid until after
a specified number of days in the hospital). Again, these
plans are NOT meant to be substituted for regular health
insurance coverage because they provide limited benefits
for only specified illnesses or medical conditions.
Medicare supplement insurance
Medicare supplement insurance (sometimes called
Medigap or MedSup) helps provide benefits that are not covered
in Medicare coverage. Those who are over 65 and signed up
for Medicare are eligible for this coverage. There are currently
10 standard Medicare supplement policies available which
are all PPO insurance plans. MedSup HMOs are available also.
