Supplemental health insurance products augment more comprehensive health care coverage, such as major medical insurance or government programs (Medicare and TRICARE). These products provide additional financial protection to consumers for medical expenses not covered by the more comprehensive coverage or for nonmedical expenses that can arise during a serious illness (such as childcare, travel, and lost income). Not intended to replace or be issued in lieu of comprehensive, major medical coverage, supplemental products provide valuable financial peace of mind to millions of families.
Designed to help with those unplanned, extra expenses that occur after an unexpected event like a cancer diagnosis, heart attack, disability, or trip to the emergency room, supplemental insurance products alleviate the increasing need for consumers to cover out-of-pocket costs. The benefits for many of these products are paid directly to beneficiaries, who can use these payments to cover costs based on their individual needs.
Medicare supplemental insurance, sometimes referred to as “Medigap,” is unique among supplemental products.