While healthcare costs in the US are continuing to rise, many are looking for ways to help save money or to be prepared if a medical issue occurs. And while healthcare costs are on the rise, the cost of prescription drugs is following suit. According to U.S. News & World Report, “in the last year, drug prices for many prescription drugs have increased significantly.”1
One way you might be able to gain some extra protection is by purchasing supplemental health insurance to, as its name suggests, help supplement your existing health insurance policy. There are many different types of supplemental insurance, including cancer, critical illness, hospital indemnity, and accidental death and dismemberment insurance. (The type of policy and what each policy covers vary widely, so if you think purchasing a policy is right for you, make sure you read it carefully and understand its benefits and limitations thoroughly.)
Covering the cost of prescription drugs is typically not something that supplemental health insurance covers directly. However, depending on the type of supplemental health insurance you buy, you may be able to use the benefits of that policy to help pay for your prescription drugs.
If you are diagnosed with a covered illness or accident and have a policy that offers a cash payout benefit, you can use that money to pay for a wide range of expenses you may incur, including the cost of prescription drugs. According to Insurance Survival Guide, “with a supplemental policy like critical illness or fixed indemnity insurance … the money goes directly to you. This gives you the flexibility not only to cover your outstanding medical expenses but also to maintain overall financial stability when an emergency strikes.”2 Insurance Survival Guide lists several ways you could use the money from such a payout, like travel and lodging; covering lost wages; paying bills; and for copayments, coinsurance, and deductibles. So if you end up facing a lot of prescription drug costs, feel free to use your payout to help pay for those.
Whether supplemental health insurance is right for you depends on your specific circ*mstances. As The Balance tells us, you should consider your health risk factors, your savings, and how much insurance you can afford when looking into purchasing supplemental health insurance.3
If you have any questions about a supplemental health insurance policy and what its benefits and limitations are, please contact a licensed insurance agent.
- U.S. News & World Report, Why Are Prescription Drug Prices Rising?, 2019
- Insurance Survival Guide, 4 Ways to Use Your Supplemental Insurance Payout, 2019
- The Balance, The Basics of a Supplemental Health Insurance Plan, 2019
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FAQs
Covering the cost of prescription drugs is typically not something that supplemental health insurance covers directly. However, depending on the type of supplemental health insurance you buy, you may be able to use the benefits of that policy to help pay for your prescription drugs.
Why is it not a good idea to have supplemental insurance? ›
Additionally, before purchasing a supplemental policy, be sure you understand its limitations and benefits. For example, it may not cover all the expenses you expected it to, it may impose waiting periods before payments start, or it may contain limits based on how much you paid and for how long.
What is usually covered by a supplemental health plan? ›
Supplemental insurance includes a variety of different types of coverage, including accident insurance, dental insurance, vision insurance, cancer insurance, fixed indemnity insurance, and critical illness insurance.
Why would insurance not cover prescription? ›
In some cases, certain medications may be excluded from coverage due to their potential misuse or abuse. Formularies often don't cover brand-name or expensive drugs when generic or less expensive medications are available. Each plan's formulary is different, so it's important to check with your insurance provider.
Do I need Medicare Part D if I have a supplemental plan? ›
You may not need it if you have drug coverage from elsewhere that's “creditable” — meaning Medicare considers it to be of the same or better value than Part D. This coverage could come from an employer or union, retiree benefits, COBRA, Tricare or the Veterans Affairs health program.
Is supplemental insurance worth it for seniors? ›
Medicare supplemental insurance can help fill that gap. For example, if you still find yourself having to pay for deductibles, copays and more — even after you apply your other insurance types — then a supplemental plan could be worth it for you and your loved ones.
Is supplemental health insurance worth the cost? ›
For many, supplemental health coverage can be a cost-effective way to help with out-of-pocket costs. Here are a few of the advantages to supplemental health insurance plans: They typically come with affordable monthly premiums. They can offer financial support when you experience unexpected medical situations.
Do you really need a Medicare Supplement plan? ›
Supplemental insurance is advisable for those with Medicare to help cover out-of-pocket costs and gaps in coverage, offering financial protection for deductibles, coinsurance, and other medical expenses not fully covered by Medicare.
What is the average cost of a supplemental plan? ›
The average Medicare Supplement plan costs in every state
| State | Monthly Cost | Rank from least expensive (1) to most expensive (51) |
|---|
| California | $162.93 | 45 |
| Colorado | $127.76 | 29 |
| Connecticut | $227.06 | 49 |
| Delaware | $150.99 | 42 |
29 more rowsOct 4, 2023
There are many different types of supplemental health insurance, including vision, dental, hospital, accident, disability, long-term care, and Medicare supplemental plans. There are also supplemental health insurance plans for specific conditions, such as cancer, stroke, or kidney failure.
Certain medications require prior authorization – or approval – from your health insurance company. This means your insurer will deny coverage until your healthcare provider fills out certain forms indicating why you need that medication.
Can you ask your insurance to make an exception with a medication? ›
When faced with uncovered medications, you have an option to file a formulary exception with your insurance to request that they allow you coverage for the medication. – Your doctor is your ally on this.
Why is omeprazole not covered by insurance? ›
Non-Covered Over-the-counter products - Nexium® (esomeprazole) 20mg, Prilosec OTC®, Prevacid® (lansoprazole) 15mg, Omeppi 20mg, Zegerid 20mg capsules or omeprazole/sodium bicarbonate 20mg capsules are not covered because these medications are available without a prescription and therefore excluded from coverage under ...
Who has the best prescription plan for seniors? ›
Along with providing cheap premiums, Aetna is ranked better than average by the NCQA and has the highest average CMS star rating of major Medicare Plan D providers. Aetna offers three SilverScript plans. You can choose a low premium and higher copays or vice versa.
What is the downside to Medicare supplement plans? ›
Some of the most notable disadvantages include high monthly premiums, limited guaranteed enrollment periods, and a lack of additional benefits like vision, dental, or prescription drug coverage.
What is the best supplemental insurance for Medicare? ›
Here's an overview of our top picks:
- Best for Medigap plan options: AARP/UnitedHealthcare Medicare Supplement Insurance.
- Best for member satisfaction: State Farm Medicare Supplement Insurance.
- Best for premium discounts: Mutual of Omaha Medicare Supplement Insurance.
Is supplemental insurance worth it? Supplemental insurance is worth it if you need extra life insurance coverage and your group plan charges a reasonable premium. Supplemental insurance is especially valuable if you have health issues and would struggle to qualify for your own individual policy.
What is the downside to Medicare Supplement plans? ›
Some of the most notable disadvantages include high monthly premiums, limited guaranteed enrollment periods, and a lack of additional benefits like vision, dental, or prescription drug coverage.
Is supplemental medicare insurance a waste of money? ›
So, is supplemental Medicare insurance a waste of money? For many, the answer is no. But because the healthcare needs and budgets of Medicare enrollees differ vastly, it's difficult that have a singular answer.
