Merritt Personal Lines Manual: Other Common Forms of Health Insurance
In addition to medical and hospitalization coverage, some people opt to purchase dental coverage, vision coverage and a separate prescription plan.
You can obtain dental insurance through an insurance company's individual or group plan (a group plan might be offered by your employer or by an association to which you belong) or through a prepayment plan or a dental service corporation. All of these plans will reimburse you for at least part of the money you spend on dental service and supplies.
This sort of coverage usually includes payment for preventive care, such as regular checkups, X-rays and cleanings. It also pays for the things we all hate: fillings, tooth extractions, inlays, bridgework oral surgery and root canals. This insurance also will help you out with expenses for dentures and orthodonture. You'll have to shell out a pretty hefty co-payment, although that co-payment may be smaller for preventive services. (Typically, insurance will not help pay for cosmetic work on your teeth.)
Vision plans typically are discount services. For a small fee -- about $15 to $20 a year -- you get a membership card that entitles you to discounts on eye exams, glasses and contacts. These discounts (usually in the 50 percent range for eyewear) often are good at a wide variety of stores, including most of the major chains. Some of the plans also offer contact lenses at a discount by mail. Some even provide a discount on non-prescription sunglasses.
If you purchase glasses or contact lenses on a regular basis (for example, if you wear disposable lenses), these plans can be quite cost-effective.
Prescription plans are much like vision plans. They also get you a discount on prescriptions if you visit a participating pharmacy. Again, they typically include most major chains. Discounts range from 5 percent to 50 percent on most drugs. Discounts may be higher if you purchase your prescription drugs through a mail-order program.
Most people who have health insurance do not need a prescription plan -- unless they have an extremely high deductible on a major medical plan and purchase prescription drugs on a regular basis.
In addition to all the types of coverage discussed so far, some insurance agents or insurance companies may try to sell you supplemental insurance policies. These are designed to pay in addition to your regular medical coverage.
They pay limited benefits, such as a daily dollar amount if you are hospitalized (these are known as hospital income policies) or expenses incurred to treat a specified "dread disease," such as cancer or a stroke.
Beware of these policies. The coverage often will duplicate what you are paying for in your comprehensive medical plan. Be sure you understand the limitations and exclusions -- and whether or not you have any real need for this coverage -- before you buy.
