Insurance · July 3, 2022

5 Types of Ancillary Health Insurance That You Should Be Aware Of

Ancillary Health Insurance – Ancillary healthcare coverage has been gaining popularity in the last few years. This type of health insurance comes in addition to primary medical and surgical coverage. It is neither a stand-alone policy nor an essential part of your healthcare plan. Ancillary healthcare covers a specific set of expenses that are not covered by standard medical and surgical plans. These expenses are also called ‘coverage gaps’ or ‘invisible costs’ as they do not directly involve hospitalization or surgery but have hidden costs. These expenses may include costs associated with diagnostic tests, office visits, procedures, surgeries and other costs that can be quite expensive without the right kind of insurance. Let’s take a look at some of the most common types of ancillary healthcare insurance.

Ancillary healthcare insurance is supplemental health insurance, which provides coverage for expenses that fall outside of the standard medical expense policy or self-funded employee benefits program. Ancillary health insurance is also known as secondary health care coverage or supplementary insurance because it supplements primary healthcare coverage.
Ancillary health insurance policies are not stand-alone policies but rather riders to your primary medical, dental and vision plans. They are meant to cover additional expenses that may not be covered by your primary plan. These ancillary plans can be purchased individually or as a group through an employer. Keep reading to learn about the five most common types of ancillary healthcare insurance:

5 Types of Ancillary Health Insurance That You Should Be Aware Of

Ancillary Health Insurance

image source: Woody’s Insurance


Ancillary health insurance, also referred to as secondary health insurance, supplements primary medical coverage. Ancillary health insurance policies aren’t required by law or government agencies such as the Affordable Care Act (ACA) or the Department of Labor. Ancillary health insurance comes in a variety of different forms with each policy designed to meet specific needs outlined by the individual purchasing it. Depending on your current healthcare coverage and financial situation, one type may be better suited for you than another. Understanding your options is essential so you can make an informed decision on which policy is best for you and your family.

Dental Insurance

Dental insurance is an ancillary health insurance policy that covers the cost of dental work. Dental insurance typically includes coverage for routine treatments, such as teeth cleanings and cavity fillings. Some policies may also cover more major procedures like root canals, crowns, and dentures. What you should be aware of: – If you’re self-employed or unemployed, dental care may not be a covered expense on your primary medical care plan. – Your total out of pocket cost for a dental procedure will depend on the type of dental coverage you have. Policies can differ in how much they cover and what their deductible is, which will affect your out-of-pocket expenses for any given procedure.

Critical Illness Insurance

Critical Illness Insurance provides protection if you or your family member suffers from a serious medical condition. A critical illness is a medical condition that requires hospitalization, medication, and treatment. A term of coverage might be 1-2 years with a benefit payout of $50,000 to $100,000. This insurance also covers complications that arise as a result of the original diagnosis, such as convulsions or strokes following an initial heart attack.

Hospital Care Insurance

One type of ancillary insurance that is often overlooked is hospital care insurance. This policy provides coverage for emergency room visits, inpatient hospital stays, and other related medical expenses that are not covered by your primary health insurance. For example, if you have a high deductible health plan with your employer, the hospital care insurance may offer coverage for many expenses that would not be reimbursed through the primary policy. The downside to this type of policy is that it only covers emergencies or conditions deemed to be life-threatening such as cancer or heart attack.

Health Insurance for Individuals with a Disability

Individuals living with disabilities may need to purchase an ancillary health insurance policy to cover their medical expenses in the event that their employer’s health insurance company denies coverage or doesn’t cover a certain procedure. For example, many people with disabilities have physical impairments that prevent them from working and thus receiving employer-sponsored benefits. These individuals may not qualify for Medicaid programs because they make too much money from their disability check to qualify for these government benefits. If this individual gets sick and needs surgery, he/she will have to rely on supplemental insurance. Another example is when a person sustains a traumatic brain injury (TBI) and needs life-long care at home that their employer’s health plan doesn’t cover. It’s important to speak with your doctor about your options and the best type of policy for you before making any decisions.

Travel Insurance

Travel insurance is designed to cover the costs of medical services and expenses when a traveler becomes ill or injured while away from their home country. These policies are usually purchased and offered by tour operators, but they can also be purchased independently. The number and cost of treatments covered by travel insurance depends on the policy you purchase. The duration of coverage is also variable, with some policies only providing coverage for up to three months at a time. Some policies may offer additional coverage for pre-existing conditions and multiple destinations, which might be beneficial for those who travel frequently.


Ancillary health insurance is an important consideration for people to take into account. These five types of insurance come in handy for a variety of reasons, and if you are paying for health insurance through work, it may already cover some of these. If you’re not sure what you need, speak to your insurance company or a financial advisor.