The 4 Most Common Health Insurance Plans

Medical care is a constant conce
in our ever aging society. On average, life expectancy is now longer than at any point in human history, but with that comes a greater need for care as one reaches their golden years. Medicare is a good start for coverage, but there are many areas that it does not cover. A lack of coverage could leave one in dire financial straights if one does not have extended medical coverage. Fortunately, there are options available to ensure that one has the required coverage while not compromising financial stability.

Medicare, which consists of Part A (hospital insurance), Part B (medical insurance), Part C (Medicare Advantage) and Part D (prescription drugs), does cover many health-related expenses, but falls short in some aspects. Areas not covered by Medicare include: co-payments, co-insurance and deductibles. Let's have a look at some of the most common plans available in the US that can help to fill in the gaps of what Medicare does not cover.

Medigap (also known as Medicare Supplemental Insurance) is one of the most common medical insurance plans and requires that you have both Plan A and Plan B coverage. Depending on the Medigap plan one enrolls in, one may be eligible for certain health and preventative services when outside the United States. These policies are sold by private insurance companies and are governed by Federal and and state laws. Regardless of the vendor, each Medigap plan (denoted by the letters A thru L) offered must be identical.

Critical Illness Insurance may also appear under the name, “disease-specific insurance”. It acts as a financial safety net from the financial strain of serious illnesses. Payments are usually lump sum, which lessens the burden of expenses incurred due to an illness. The coverage available depends on the policy, but usually includes payments for: child care and household assistance, experimental treatment (usually related to cancer therapy), accommodation (when treatment requires travel), specialists and deductibles.

Accidental Death insurance is usually a combination of two plans: “Dismemberment and Accident Health Insurance” and “Accidental Death”. Coverage in these polices depends on the state and the regional insurance regulations in effect.
Usually, Accidental Death and Dismemberment pays out one lump sum to the named beneficiary of a person killed in an accident. Smaller sums may be paid when the accident causes a loss of limb, paralysis or damage to vision. Suicide and death due to illness are not covered under these plans.
Depending on the policy, Accident Health Insurance may cover costs resulting from an accident, which are not covered by one's normal health insurance plan. In some cases it is possible to have these polices enhanced to also cover expenses related to lodging, travel and extended home-care service expenses.

Hospital Indemnity Insurance also know as Hospital Confinement Insurance, provides benefits if one is confined to a hospital due to illness. Depending on the plan, there may be a minimum waiting period before monies are paid. Two typical scenarios for payment are lump sum or daily/weekly.

Before buying any additional coverage, make sure to check existing policies carefully. Medical Supplement Insurance is heavily advertised and if one is not careful one may end up purchasing duplicate or overlapping coverage. Additional medical coverage is not overly expensive, but the whole point is not to incur any additional or unnecessary costs. Do your due diligence and you'll be well covered for any medical emergency.