What is Ancillary Health Insurance and Its Features

by Mouli Chakraborty
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Ancillary Health Insurance

The peril of the Covid-19 pandemic on people has ameliorated for now but the effect it has created on people is really painful. The employees of various companies, even in their post-covid situation, can’t get out of their concern that what will happen to them if they have been grasped again by any hazardous ailment like covid-19 that doesn’t come under the coverage of their health insurance plan.

If they or their family need treatment for such diseases and have to pay a huge amount of money for that, how will they arrange for all of it without any coverage?

Dear employees! We are assuring you that you don’t have to worry about it because ancillary health insurance has come to take your headache. Yes, you are hearing exactly what we’re saying!

Though this health insurance company will not bear the expenses of the normal health problems that other companies bear, it bears those ailments’ expenses that other companies refuse to cover.

Curious to know more about ancillary health insurance, like, what is ancillary insurance? What are ancillary benefits? What are the ancillary employee benefits? etc? Well! Read this write-up and you will know every detail about it!

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Ancillary Insurance Definition

It’s supplemental or additional health coverage that you can use for complementing your prevailing health plan. With it, you will be able to make payments for the treatments or other health-related expenditures that don’t come under the coverage of traditional health insurance.

You can purchase this type of insurance either separately from a private firm or obtain it with the consent of your employer by enlisting yourself in a group agenda.

Whichever of the two is the case, you should know that ancillary health insurance plans can’t be used as a substitute for the plans of traditional health insurance. Now, let’s discuss what are ancillary benefits.

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Ancillary Benefits

Ancillary Benefits
Ancillary Benefits

They are the coverage that ancillary health insurance offers. The employers of a company give these benefits to their employees. They include these benefits in their employees’ benefits packages. There are two schemes of offering these benefits.

Ancillary benefits can be offered in the form of voluntary benefits. It means that the employee of a company has to pay a hundred percent premium for the insurance plan and in return, they will get the benefit of expending for a lower premium purchasing (as a group plan).

It will help them save an amount of money that would otherwise have been expended in an attempt to buy a separate or individual insurance policy. 

Also, instead of voluntary benefits, one can choose to go for employer-contributory benefits (another benefits scheme of Ancillary health insurance).

In this scheme, your employer will pay anywhere between half of the total cost for the premium. In return, you will get deducted amount of the ancillary benefits to share in your paychecks.

As regards health insurance, the workers have to pay their share of ancillary benefits premium and they do through payroll deduction.

When the employee decides for using these benefits, a claim for the benefit amount is presented, which is then disbursed to the provider. In the case of Life Insurance, the policy beneficiary directly gets the claims.

Ancillary Insurance Products

Today, the employers or bosses of any company offer their employees some of the most familiar or popular ancillary health insurance benefits and they are:

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Critical illness insurance

This insurance of ancillary health insurance provides the employees with a lump sum capital benefit in case they’re diagnosed with any covered illness.

With this insurance, the employees of various companies are saved from the burden of paying huge amounts of money for the treatment of their expensive ailments (heart attacks, cancer, strokes, etc).

This insurance covers those costs for treatments that are not covered by traditional health insurance. It covers various extra costs like deductibles costs, out-of-pocket costs, etc. The employees can expend the funds for their travel expenses or other regular bill payments.

Wellness Benefits

The wellness benefits of Ancillary health insurance provided by an employer to his employees give each employee an incentive for staying healthy.

This incentive can help them with their productivity as well as reduce their expenses of health risks. With the help of these benefits, you can pay a portion of your exercise classes’ or gymnasium membership fee.

Disability Insurance

Some employees may be ill or injured and may be ridden to bed for a long period. Here’s where disability insurance comes to help. This insurance offers the employees both short as well as long-term benefits and thus serves as a replacement for the amount the workers lose at the time of their disability.

The Bureau of Labor Statistics declares that about forty-two percent of workers who works in private industries have associated themselves with short-term plans of disability insurance (according to the survey done in 2018).

Also, the 2018 survey demonstrates that nearly thirty-four percent of private employees are found to access long-term disability plans, sponsored by their employers.

In the case of this insurance, the employers of different companies usually pay the entire cost. No matter even if you are not entitled to group disability coverage.

Be smart by owning the coverage of individual disability insurance (of Ancillary health insurance) as these schemes are portable. And, you don’t have to bother even if you switch your employer.

Accident insurance

This insurance of ancillary health insurance, like critical illness insurance, also provides the employees with a lump sum capital benefit in case they undergo any serious injury due to an accident.

The list of injuries for Ancillary products insurance accident benefit include dislocations, traumas, burns, lacerations, or other severe damages.  This type of supplementary insurance pays your medical bills for such injuries, which are not covered by your normal health insurance.  

Life insurance

Ancillary health insurance also comprises a scheme of life insurance that provides financial security and support to the employees’ families, their business associates, and their loved ones so that they don’t get financially distressed after their demise.

Life insurance provides its valuable benefit to every employee, regardless of their background, financial situation, coverage situation, or current family.

If your priority is to get guaranteed coverage without passing through the process of health underwriting, choose the group life insurance scheme. It also gives those individuals coverage, who are not getting the coverage elsewhere because of their pre-existing health ailments or any other problems. 

Vision Or Dental Coverage

Any contemporary employee benefits package usually comprises vision or dental coverage benefits. Vision ancillary health insurance offers benefits to those who are doing eye exams, getting contact lenses or their fittings, getting eyeglass lenses or frames, and going through LASIK procedures as well as other corrective surgeries.

Dental ancillary health insurance offers benefits for dental care such as preventive care, crowns, and oral surgeries such as tooth extractions, fillings, and root canals.

Also, some insurance providers offer prosthodontics, orthodontics, and periodontics plans such as dentures. Veneers or implants also come under dental plans.

Pet insurance

For some people, pets are even more than their family and they always try to keep them healthy and safe. During the pandemic period, possessing pet insurance coverage increased as the buying of pets increased at that time.

People bought pets at that time a lot for their own comfort and companionship. Some employers offer their employees pet insurance.

This type of ancillary health insurance covers a certain percentage of the medical expenses done on pets. So, pet owners can treat their pets and keep them healthy and active at a very low cost.

The pet insurance scheme covers the pets’ sudden injuries, emergency care, illnesses, surgeries, accidents, medications, exam fees, tests, and diagnostics.

Importance Of Ancillary Employee Benefits

Providing Ancillary health insurance benefits to your employees is important as by doing so, your company indirectly gets many benefits. Here are the reasons why you should offer your employees Ancillary health insurance benefits:

  • Ancillary health insurance benefits cost less than the benefits offered by traditional health insurance companies. Ancillary benefits have multiple options and schemes and the employees can choose the ones that fit their needs.
  • Your employees can work in peace, without any stress for the expenses of their own ailments and also that of their close ones. They focus more on their work.
  • It results in increased retention and decreased turnover. The employees would love to stick to the same job in which their employers are offering them these benefits.
  • It will increase your competitiveness.
  • As per section 125 plan (the cafeteria plan), both the employers and their company’s employees are able to curtail their tax obligation, resulting in score tax savings.

What Does Ancillary Mean In Healthcare:

What Does Ancillary Mean In Healthcare
What Does Ancillary Mean In Healthcare

Ancillary means working in a corroboratory or subordinate role.

The Ancillary services in healthcare (ancillary health care) imply an extensive range of healthcare-related services that are contributed to supporting the primary clinician’s work.

Some of the examples of Ancillary services are ambulance services, audiology services, cardiac monitoring, durable medical equipment or DME, ASC (Ambulatory surgery center) services, behavioral health services, dialysis services, and hearing services.

Wrapping Up

Thus, Ancillary benefits for employees are available for all-sized businesses and budgets. They possess great importance for both the employers and employees of various companies. So, discuss with your employees, which kind of Ancillary health insurance benefits they would like to avail themselves. If you are an employee of a company you should suggest to your employer about including the benefits of health insurance within their package.

FAQs

Q.1. What is an ancillary insurance premium?

Answer: Ancillary insurance offers you to submit its premium at the chosen time, just like other health insurances. The benefits of ancillary health insurance are the coverage of secondary health insurance that covers varied medical expenses.

Q.2. What are examples of ancillary benefits?

Answer: The coverage for the transportation of Ambulance, drugs, bandages (medical supplies), and blood are some of the examples of ancillary health insurance benefits.

Q.3. What are examples of ancillary products?

Answer: Some of the examples of ancillary products are Wellness Benefits, Critical illness insurance, Disability insurance, accidental insurance, life insurance, Vision Or Dental Coverage, and pet insurance.

Q.4. What are ancillary benefits in Medicare?

Answer: Ancillary benefits in Medicare includes coverage for patient care, laboratory investigations, USG (Ultra Sonography), etc.

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