Supplemental health insurance can provide protection, peace of mind
Like many dentists, you’ve likely purchased high quality health insurance and feel you have the income and savings necessary to cover any out-of-pocket costs. Yet, statistics show that the cost of inpatient and outpatient medical care in most states continues to rise, which means your share of the total cost could end up being much greater than you are prepared for. It might be wise to consider supplemental coverage.
Supplemental medical insurance can be an affordable way to help protect you and your family and safeguard against having to deplete your savings account, a college fund or retirement savings to pay your share of an expensive hospitalization or medical bill. Consider the value of this coverage — it might make you feel better long before the bills arrive.
Hospital costs add up fast
The odds of hospitalization are more likely than most of us realize. Each year, 7% of Americans will have to stay at least one night in a hospital.1 And, the average cost of a three-day hospital stay is $30,0002 or higher, depending on what state you live in.
A supplemental medical insurance product like ADA Hospital Indemnity Insurance can help offset out-of-pocket costs for a hospital stay, visit to the emergency room or outpatient care services for a qualifying treatment such as chemotherapy. These hospital cash benefits are paid directly to you — to use at your discretion, which makes it flexible. And, this coverage is competitive for ADA members who benefit from group rates. For example, for less than a $600 annual premium, an ADA member age 50 could apply for up to $1,000 daily cash benefits.
What if a critical illness strikes?
Hospital costs for minor illnesses or injuries cannot compare to the staggering financial burden of critical illnesses like cancer, heart attack or stroke. These critical illnesses can happen to otherwise healthy people, and statistics show they are occurring at an alarming rate. Each year, there will be over 1.7 million new cancer cases in the U.S.3 and someone in the U.S. has a stroke every 40 seconds.4
Unfortunately, the related costs to care for a family member with a critical illness can be as catastrophic as the diagnosis if you’re not properly insured and financially prepared. What if your spouse had to quit their job to be a full-time caregiver? What if you needed to pay for in-home health care, or pay to renovate your living space to be disability accessible, or travel to a faraway hospital or specialized treatment facility for medical care or rehabilitation? These life-changing events often happen with little warning and ready cash or personal savings may not be enough to cover what’s needed.
ADA Critical Illness Insurance can help ease this financial stress by providing up to $50,000 in a lump sum payment upon first diagnosis of one of 17 covered critical illnesses, including stroke and cancer. And, similar to hospital indemnity benefits, the payment is made directly to you. This important supplemental medical coverage can help fill the gaps of your primary health insurance and provide a sense of financial protection when you and your family need it the most. And, you may be surprised at how competitively priced it is for eligible ADA members: a $50,000 lump sum critical illness benefit at age 50 under ADA group rates would only cost approximately $500 for the year.
The cost of an extended medical care journey
Critical illnesses often require extensive, costly health care services over an extended period of time. This can include medical care in a skilled nursing facility, rehabilitation center or nursing home following an extended hospitalization — and the related costs can reach exorbitant levels. How will you pay the costs of these types of extended health care?
The ADA Hospital Indemnity Insurance Plan offers an optional Extended Care Rider that can help offset the out-of-pocket costs of extended recovery care after a hospitalization. This rider can provide daily benefits of up to $250 per day for up to 200 days to help address costs such as home health care, skilled nursing and nursing home expenses. That same 50-year-old member would pay only $44+ that year for this additional coverage.
ADA member value
Health issues are difficult enough to cope with, much less having the financial burden of paying for them long after the diagnosis. The ADA supplemental medical insurance plans are an affordable option for eligible members to help guard against the high out-of-pocket costs of health care. Learn more about the competitive value of the ADA Members Insurance Plans.
About the author
Mr. Kacirek, FSA (fellow of the Society of Actuaries), MAAA (member of the American Academy of Actuaries) is vice president, Specialty Insurance Markets for the ADA Members Insurance Plans.
Effective June 1, 2019, certain insurance company members of the Protective Life group assumed administrative responsibilities for the ADA Members Insurance Plans issued by Great-West Financial®.
This material is not a contract. Benefits are provided through a group policy (Nos. 1117GH-HIP Hospital Indemnity and 1127GH-CIP Critical Illness) filed in the State of Illinois in accordance with and governed by Illinois law, issued to the American Dental Association by Great-West Financial®. The ADA is entitled to receive royalties from the group policies issued to the ADA by Great-West Financial. Coverage is available to eligible ADA members in all 50 states and U.S. territories under the aforementioned group policy. Each Plan participant will receive a Certificate of Insurance explaining the terms and conditions of the policy. Great-West Financial® is a marketing name of Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; Great-West Life & Annuity Insurance Company of New York, Home Office: NY, NY, and their subsidiaries and affiliates. GWL&A is not licensed in New York, but eligible members residing in New York may apply for coverage under the aforementioned group policy. ©2020 Great-West Life & Annuity Insurance Company. All Rights Reserved. RO1355524-1020
1. CDC, National Center for Health Statistics, Hospital Utilization (in non-Federal short-stay hospitals)
2. The benefits of health insurance through the marketplace (2019), Healthcare.gov
3. American Cancer Society, Cancer Facts & Figures 2018
4. CDC, Stroke Statistics