Ancillary

What Is Ancillary Insurance?

Ancillary insurance is a subtype of health coverage, complementing major medical insurance. It covers expenses that may not be included in a primary health insurance plan, such as vision and dental for adults, disability coverage, prescription drugs and more. For example, if major medical doesn’t cover prescription drugs, an ancillary policy probably would.

How Does Ancillary Insurance Work?

Most ancillary insurance benefits aren’t separate from primary coverage. For instance, someone may have ambulance transportation covered as an ancillary benefit as long as they have current primary medical coverage, too.

Ancillary health insurance policies can vary in their coverages and provisions. As with any insurance, it’s important to read the policy carefully and understand what is and is not covered, such as ancillary benefits allowing a health savings account to offset dental care expenses with pre-tax dollars.

Ancillary insurance does not have to be an “all or nothing” deal, either. Depending on care needs, employees may find buying “a la carte” more cost-effective, especially if employers are not participating in the contributions.

Employer-Contributory vs. Voluntary

Some plans are employer-contributive — employers can contribute to premiums between 50% to 100% and are usually processed through employee payroll deductions. But with voluntary plans, employees pay a larger percentage or the entire amount.

Benefit-cost is the deciding factor on which plan to offer. Employer-contributory ancillary benefits are often more expensive but may end up being the most cost-effective in the long run for large businesses with many employees.

Employers may opt to offer both types of ancillary coverage, so employees can choose the plan that works best for them.

Ancillary Insurance

Accident Insurance

Cancer Insurance

Dental Insurance

Hearing Insurance

Hospital Indemnity

Travel Insurance

Vision Insurance

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SSTX Financial is here when you need it the most. We are reliable, honest and professional in our work.

Call Us Today