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Supplemental Health Insurance 101

posted by AHIP

on April 17, 2019

Hospital or Other Fixed Indemnity, Accident-Only, Critical Illness

What Supplemental Health Insurance Is

Supplemental health insurance typically refers to products that are designed to supplement comprehensive major medical insurance. These products are considered “excepted benefits” under the Health Insurance Portability and Accountability Act of 1996 (HIPAA). This means that because they are not intended to pay providers directly for medical expenses, they are not subject to many of the requirements for major medical health coverage under the Affordable Care Act (ACA). These plans typically:

  • Pay benefits directly to an individual, instead of paying providers directly
    for medical claims. This allows you to pay expenses that can arise when
    you are sick or injured, such as cost sharing or expenses not related to
    your medical bills.
  • Can be renewed as long as premiums are paid.
  • Pay benefits regardless of other coverage that you have.
  • Are not limited to doctors in a specific network.
  • Can include waiting or “look-back” periods before the benefits start.

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