Health benefit insurance plans (HBI) are new on the insurance market. These plans are designed to protect you against the high out-of-pocket costs that you could face with major medical insurance. HBIs combine many different types of coverage, such as critical illness protection, accident coverage and others to create a supplemental insurance package that protects your finances.
Why You May Need Health Benefit Insurance
There are many reasons why health benefit insurance may be beneficial for you. If your employer has a waiting period before you can be covered by the company’s group medical program or if you need insurance outside of the annual open enrollment period for Obamacare, you could benefit from HBI. If you don’t have a qualifying event, such as a divorce or job loss, and you can’t sign up for coverage through the insurance marketplace, HBI can help you. High deductibles are another good reason to invest in HBI, and you may be able to avoid high out-of-pocket costs with an HBI plan.
HBI plans pay a fixed-cash benefit for covered illnesses or injuries. Under the ACA, marketplace plans often have high deductibles to compensate for lower premiums. In 2017, bronze-level coverage on the exchanges had individual deductibles of over $6,000 with families paying twice as much. HBI plans also might include benefits like telemedicine and discounts at pharmacies, saving you even more money on everyday health costs.
Supplement to Major Medical
HBI coverage is a supplemental policy to your major medical coverage. The policy is a type of fixed indemnity plan that pays a specified amount per covered benefit. Some plans include doctor and hospital benefits as well. It’s important to keep in mind that HBI insurance is not meant to be used as major medical coverage. These plans do not cover pre-existing conditions and don’t qualify as health insurance under regulations set forth by the ACA. You will face a tax penalty if you only have HBI coverage as your health insurance.
Health benefit insurance combines several types of ancillary products into one policy, providing you with coverage that is meant to be supplemental to your major medical coverage. Combining different products together allows you to pay lower premiums and offset the rising costs of healthcare.