Health Insurance Industry Touts Supplemental Policies to Cover Medical Costs

As out-of-pocket medical costs grow for many Americans, the insurance industry is offering a way to help and, at the same time, expand its business: by selling supplemental policies that may fill the gaps for consumers.

As out-of-pocket medical costs grow for many Americans, the insurance industry is offering a way to help and, at the same time, expand its business: by selling supplemental policies that may fill the gaps for consumers.

Insurers are increasingly marketing these limited policies that pay cash after a hospital stay or specific disease diagnosis, such as cancer. Such products, which cost less and provide fewer benefits than conventional insurance, can play a role similar to “medigap” coverage, which fills holes in the Medicare program for seniors, insurers say.

The policies are promoted as helping cover out-of-pocket expenses that can reach thousands of dollars in plans offered by employers and the health-care law’s online marketplace.

Read the full story here: http://wapo.st/1lBF9jI

Source: The Washington Post