Covering out-of-pocket expense

TA | November 17, 2008

Q: I have a very high co-pay/deductible on my current insurance ($7500)....if I enrolled in MedSave, would that cover this out-of-pocket expense?

A: As more group health insurance plans move toward this type of high deductible, individually purchased supplemental insurance has become more important to many people.

Supplemental insurance has no deductible and so is said to pay "first dollar benefits" for covered items up to the policy limit. The amount that the policy pays is set by the amount of the premium level you choose. The popular supplemental insurance policies at MedSave.com have at least three levels of benefits ranging from inexpensive (with low level benefits) to expensive (with the highest level benefits).

Keep in mind that the benefits of supplemental insurance policies are not based on the your other policy's deductible but rather they pay the cash benefit amount stated in the policy you choose. Do not assume that supplemental insurance pays your deductible dollar for dollar. The actual benefit could be more or less than your current policy deductible.

See the article "Review of Core Health Insurance" for a more detailed explanation of how this works. The chart under the Maximum Benefit section of the article explains how the maximum $1 million coverage breaks down into the various covered items under each of the four options avaivable named "Value Plan", "Silver Plan", "Gold Plan", and "Platinum Plan".

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