Having health insurance doesn’t always guarantee full protection from medical bills. Many Americans face high out-of-pocket costs for routine care—and those expenses can skyrocket with unexpected treatments or specialist visits.
In 2024, the average annual premium for employer-sponsored family health coverage reached $25,572, with workers paying roughly $6,296 out of pocket, according to the Kaiser Family Foundation. Single coverage deductibles average $1,787—meaning patients must cover this amount before their insurance begins paying.
Basic health plans often leave significant gaps. Many common needs like vision care, dental treatments, co-pays, and medications aren’t fully covered, leaving patients to cover these costs themselves. Secondary insurance can help fill these gaps, easing the financial burden and improving access to needed care.
High Out-of-Pocket Costs Create Financial Strain
Even with primary insurance, high deductibles and frequent co-payments can strain household budgets. Secondary insurance policies can reduce this strain by covering expenses the main plan leaves behind, providing peace of mind for families managing ongoing health needs.
Chronic Conditions and Frequent Care Require More Coverage
People with chronic illnesses or those needing regular therapies and medications may quickly exhaust their primary insurance benefits. Supplemental insurance plans can provide critical support, covering routine treatments that might otherwise become financially overwhelming.
Medicare Alone Often Isn’t Enough
For seniors on Medicare, the standard coverage excludes certain costs like deductibles and coinsurance. Medigap or supplemental plans are often recommended to cover these gaps, ensuring more comprehensive protection for older adults.
Secondary Insurance Is More Accessible Than You Think
Secondary coverage can be obtained through various channels—employer-sponsored plans, government marketplaces, or private insurers—and is often available as a supplement to existing policies or Medicare.
Alternatives Like HSAs and FSAs May Also Help
For some, flexible spending accounts (FSAs) or health savings accounts (HSAs) offer a smarter approach to managing medical expenses. These accounts provide tax advantages and let you save or invest funds for future health costs without the need for extra premiums.
Making the Right Choice for Your Health and Wallet
Choosing whether to get secondary insurance depends on your health needs and finances. Comparing costs like premiums and deductibles with potential coverage benefits can help determine if a supplemental plan or an HSA/FSA is the better option to protect your health and budget.
