Insurance Vs Supplemental Insurance

Supplemental insurance is extra insurance that covers specific things not covered by your standard major medical policy. It is a separate policy with separate benefits.

A Medicare supplement may be a readily familiar example as it is one of the most common types. Medicare doesn’t cover prescription drugs, at home care, nursing homes, or long term care. Thus, many seniors buy additional insurance that does cover one or more of those items without competing directly with Medicare, thus sidestepping the issues of coinsurance.

Coinsurance means that something is covered by two policies, but the maximum coverage is equal to the best coverage of one of the policies. In contrast, supplemental coverage specifically covers something additional that