Why your medical insurance isn't always enough

Sadly, few things in life are perfect. Your medical insurance is no exception; even great medical insurance policies can have gaps in coverage that leave policyholders on the hook for high, unexpected medical costs. That’s why voluntary benefits are offered as a solution to help cover those costs. Below are some common examples of how people can receive surprise, costly medical bills and how voluntary benefits can help you avoid them. 



Deductibles

A deductible is the amount you pay out-of-pocket for medical bills before your insurance kicks in to pay the rest. Many people are a little fuzzy on what, exactly, a deductible is, let alone the deductible amount they have on their policy. This can result in a particularly costly and surprising medical bill, especially if you have a high-deductible health plan. It’s important to be aware of the medical gap that can be created by high-deductible health plans so that you know where you may need additional coverage from voluntary benefits. 

Coinsurance

Coinsurance is directly related to your deductible. It is a percentage you pay for a covered health care service after you’ve already paid your deductible amount. Let’s say you already paid your deductible for the year and the cost of treatment is $200. If your coinsurance is 50%, you will still pay $100 for that visit while insurance covers the remaining cost. If you haven’t paid your deductible for the year, you’ll owe the full $200. With voluntary benefits coverage, you could receive a benefit to help pay for any coinsurance costs that you may incur. 

Co-payments

Co-payments are flat fee payments made toward your insurer when using a covered health care service. These can be required even after you’ve met your deductible. The co-payment amount depends on the service you’re receiving, but the price is fixed and pre-determined. Typically, if you have a high premium on your policy then your co-payments are less. Conversely, low premium plans may result in higher co-payments. Regardless of the size of your co-payment, having additional voluntary benefits can help you cover those costs. 

Logistical costs

Aside from medical costs, there are logistical expenses often associated with recovery, hospital visits or more extended stays. This may include parking, transportation, meals, medical appliances and babysitters. Medical insurance doesn’t account for these expenses, and we often don’t think of these added costs until it’s too late. The great thing about voluntary benefits is that the money is paid to you, not the healthcare provider. You can use it however you see fit. Voluntary benefits can help pay for that extra care you need or any expenses associated with your care. 

Even if you think that you have sufficient major medical insurance, take a second look at your policy to understand the details of your coverage. All too often, those who are unfamiliar with their insurance policies don’t know where they lack coverage until they experience sticker shock with their bills. For additional coverage and security, research voluntary benefits that are available to you so that you can be financially protected no matter what life throws your way.