What is Supplemental Health Insurance?

Supplemental insurance refers to an insurance policy that supplements, or adds to your primary health insurance coverage. As mandated by the Affordable Care Act (“ACA”), to avoid a penalty for not having medical insurance, you must be enrolled in a qualified health care plan, your primary medical insurance.   Your primary medical insurance provides coverage for most types of medical expenses, which may include visits to your primary doctor as well as hospital visits. However, there are other expenses related to your health care that may not be covered by your primary medical insurance.

supplemental Health Insurance 101


Types of supplemental health insurance

Short term health insurance is a flexible option for individuals and families who need temporary coverage. The coverage provided from a short term health insurance plan is meant to help bridge the gap for those without coverage until they are able to enroll in a long-term, major medical plan. Plans can range anywhere from 1 to 11 months. A short term plan can often be dropped at any time without a penalty. Situations where you may need this type of supplemental health insurance are when a person is between jobs; when a young adult is no longer covered under a parent’s insurance plan; for an early retiree; when you are writing for other coverage to begin; or when you missed open enrollment for your major medical insurance.


Dental insurance may not be included with your major medical policy, or an individual or family may need coverage for a particular procedure not covered by their dental plan. In either case, you may choose to purchase supplemental dental insurance provide dental coverage or to enhances your current dental coverage.


Accidents happen. Unfortunately, sometimes small things have a big impact both physically and financially. Supplemental accident insurance or personal accident insurance, is designed to help cover the costs that follow an unexpected injury. This type of supplemental insurance typically would reimburse you for medical costs resulting from accidents. This could include emergency treatment, hospital stays, medical exams, and other related expenses like transportation costs or lodging needs. It may also be possible to use this insurance to help pay for some of your living expenses. Accident insurance can help keep you keep you prepared for the unexpected.

Critical illness

Critical illness supplemental insurance (sometime referred to as Disease Specific Insurance), is a type of supplemental health insurance that provides a benefit paid directly to you if you are diagnosed with, or experience a sudden onset of a critical illness. Depending on the policy , some of the commonly covered critical illnesses are heart attack, cancer, stroke, kidney failure and/or paralysis. Often, the benefits provided by these types of policies can be spent as you see fit, and getting this benefit would have nothing to do with how much your primary health insurance paid for your medical costs.

Limited medical

Limited medical is supplemental insurance that pays you fixed benefits to help with every day medical expenses. You may also be able to utilize the benefits alone or in addition to your primary insurance to give you extra help with those unavoidable out-of-pocket expenses and other costs major medical doesn’t cover. There may be no deductibles or coinsurance and you may be able to use the payments from your limited medical insurance to help pay the deductibles and coinsurance from your major medical plan. For those with a high-deductible insurance plan, limited medical insurance may offer coverage even before your primary coverage kicks in.

Other insurance

In addition to the supplemental health insurance options described above, there are two additional insurance options available to help protect you family.


If you’re unable to work due to illness or injury, supplemental disability insurance is meant to cover the gap between what you’ll get from your long-term disability policy and what you’d actually need to maintain your current lifestyle. Supplemental disability insurance helps replace a major portion of your income when you are sick or injured and unable to work. Some people think of it as “paycheck protection.” Having disability insurance can provide a sense of security, knowing that if the unexpected should happen, you’ll still receive a monthly income.


Term life insurance policies can be a great choice to provide or increase your coverage during especially critical periods of your life. Term life insurance policies provide coverage for a set “term”, which can be 10, 15, 20, 25, or 30 years and because the coverage only lasts a set period of time, these policies are usually cheaper and simpler than permanent life insurance policies.  

Permanent life insurance does not expire (unlike term life insurance policies), and may provide lifetime protection and peace of mind.


Avoid the headache of finding insurance on your own by using Augeo Benefits’ online tool or speaking to a licensed benefits counselor. This simpler way to get quality health insurance is only one click away. Get a free quote online or speak to a licensed benefits counselor by calling 855-446-4405.

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