Supplemental insurance covers expenses not normally paid for by insurance and may pay you cash when you cannot work. 

There are six types of Supplemental Insurance policies sold in Florida, including:

  1. Medigap (Medicare Supplemental Parts C, D, E, F)
  2. Vision
  3. Dental
  4. Critical Illness
  5. Accidental Death and Dismemberment
  6. Hospital Indemnity

Medicare Supplemental Insurance (Medigap)

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One of the most common types of supplemental insurance is called Medigap.  It is sold by private insurance companies and their licensed agents to Floridians enrolled in Medicare.

Original Medicare, which includes Part A (Hospital) Insurance and Part B (Medical) Insurance, pays for many health-related services and medical supplies – but it doesn’t cover everything.

You can purchase a Medicare Supplemental Insurance policy to pay for coverage gaps that are not paid for by Medicare such as co-payments, co-insurance and deductibles. Together, these can add up to very large out-of-pocket expense, especially if you are hospitalized or need skilled nursing services.

Some Medicare Supplemental policies will also pay for health services outside the United States and will cover preventive services not covered by Medicare.

If you are in Original Medicare (Parts A and B) and have a Medigap policy, Medicare first pays its share of the Medicare-approved amounts for your covered health care costs, then your Medigap policy pays its share.

The best time to buy a Medigap policy is during your 6-month Medigap open enrollment period, because you can buy any Medigap policy sold in your state even if you have health problems. This period automatically starts the month you’re 65 and enrolled in Medicare Part B, and once it’s over, you can’t get this guarantee of acceptance again.

Other Types of Supplemental Insurance

Aside from Medigap policies, there are three other types of supplemental health insurance that can be bought in Florida. These supplemental policies may be available through your employer or you may purchase them directly from a licensed Florida health insurance agent.

Vision Insurance

Vision insurance covers expenses related to normal eye protection and health including optometrist visits, choice of eyewear, some elective surgical procedures and more. Vision policies are relatively inexpensive in Florida.

Dental Insurance

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Many dental expenses are not covered by normal health insurance policies (nor by Medicare).

Dental Insurance fills the gap and pays for things like cleaning visits, cosmetic procedures such as caps and teeth whitening and more. Dental plans are also relatively inexpensive to purchase.

Critical Illness Insurance

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Critical illness insurance, also known as disease-specific insurance, is meant to ease the financial burden of a serious illness such as cancer.

Critical illness policies provide a lump-sum cash benefit to pay for additional costs that are related to an illness but are not covered by your health plan or disability plan.

Depending on the policy, the coverage may be used to pay for:

  • deductibles
  • out-of-network specialists
  • travel and lodging
  • experimental treatments
  • child care
  • in-home assistance
  • living expenses including your automobiles, utilities and food

Accidental Death Insurance

There are two kinds of accident policies: Accidental Death and Dismemberment Insurance (AD&D) and Accident Health Insurance. These two plans are often combined and sold together. It is important to speak with a licensed Florida insurance agent because plans, policies and coverage options vary by state.

An accidental death and dismemberment policy pays a lump-sum cash benefit if you are the named beneficiary of someone who dies in an accident. It may also pay a smaller amount if the person did not die but lost a limb, eyesight, or suffered paralysis. AD&D insurance doesn’t pay for deaths related to illness, suicide, or natural causes.

Accident health insurance, sometimes called a “accident hospital indemnity” policy, pays for medical costs resulting from an accident that aren’t covered by your regular health insurance. These policies often also cover the costs of extended home care service and travel and lodging expenses for family members.

Hospital Indemnity Insurance

Physician and Nurse Pushing Gurney

Hospital Indemnity Insurance, also known as “Hospital Confinement” insurance, provides a cash benefit if you are confined to a hospital due to an illness or serious injury. The cash benefit is paid out in one lump sum or as a periodic payment. Payout may not begin until after a waiting period.

Similar to other types of supplemental insurance, the additional coverage is meant to help you pay for services and items not covered by your regular health plan.

THINGS TO CONSIDER

  1. How will you cover your living expenses if you cannot work due to sickness or injury?

    Even a slight injury can take your income offline for weeks. Can you afford to lose this income?

  2. Can you afford your deductibles?

    How large is your current health insurance deductible? Do you have this in the bank right now?

  3. Employment risk

    Does your job involve high-risk activity?

  4. Your unique medical needs

    How is your eyesight? Do you visit the dentist often?

Sample Prices

SUPPLEMENTAL INSURANCE PLAN TYPICAL COST IN FLORIDA
Medigap
- Part A Deductible
- Part B Deductible
- Part B Excess Charges (100%)
- Foreign Travel
$100-500 per month
Ref: Medicare.gov
Dental Insurance$15-100 per month
Vision Insurance$15-100 per month
Accidental Death $250,000 Limit$15-30 per month
Critical Illness$10-30 per month
Hospital Indemnity$10-30 per month

SUPPLEMENTAL INSURANCE PROVIDERS

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