More than Just Medical Coverage: A Look at Ancillary Products

An ancillary product is an add-on insurance that works with your main insurance to offer additional financial support to help offset the expenses that you would otherwise have to pay on your own. Bundling these and other ancillary products with your existing health insurance policies can provide you with comprehensive coverage and peace of mind. There are no specific enrollment periods for these, so ancillary products can be added at any time of year.

Here are some of the most common ancillary products:

ACCIDENT INSURANCE: Accident insurance policies pay a cash benefit to help cover the cost of medical expenses after an accidental injury.  These plans can help pay for the deductibles and coinsurance you may incur on your health insurance policy when an unexpected injury occurs.  

DENTAL INSURANCE:   Private dental insurance policies help people budget for the cost of maintaining their dental health. Dental health is important because it affects your overall well-being, not just your teeth and gums. Poor oral hygiene can lead to infections, pain, and even contribute to serious health conditions. 

Most dental insurance plans follow a three-tier coverage structure: 

1. Preventive Care (60% -100% Covered) 

   • Routine cleanings (typically 2 per year) 

   • Exams and X-rays 

   • Fluoride treatments (for children) 

   • Sealants (for children

     
     

2. Basic Services (50% - 80% Covered) 

   • Fillings for cavities 

   • Simple extractions 

   • Root canals 

   • Periodontal treatment (gum disease care) 

     
     

3. Major Services (20% -50% Covered) 

   • Crowns 

   • Bridges 

   • Dentures 

   • Oral surgery (complex extractions, wisdom teeth removal) 

   • Implants (may not be covered in all plans) 

     
     

Additional Considerations 

• Orthodontics (Braces & Invisalign) – Some plans offer coverage, but often with limitations. 

• Waiting Periods – Many plans have a waiting period before covering basic or major services and some have immediate coverage, but a lower annual maximum for the first year. Some companies waive the waiting periods if you have had recent prior coverage.  

• Annual Maximums – Most dental insurance plans have a yearly coverage limit (e.g., $1,000–$5,000) and some have a lifetime maximum for implants or orthodontics that is less. 

• Network Restrictions – PPO plans allow you to go to any dentist you want but require using in-network dentists to get the best rates.  

  
  

If your dentist is in the dental network, you will have the highest benefit without balance billing.  Balance billing is the difference between what the insurance company pays and what the dentist charges.  So if the dentist is not in-network, they can pass on those charges to you.  

VISION INSURANCE: Vision insurance helps reduce your expenses for routine preventive eye care like eye exams for glasses and prescription glasses and contact lenses. It is typically a supplemental insurance plan, either offered separately or as part of a health benefits package. Vision plans are typically very inexpensive, and you can enroll at any time of the year.  

Most vision insurance plans cover the following: 

• Routine Eye Exams  

  • Covers annual or biennial eye exams to check vision and screen for eye diseases (e.g., glaucoma, cataracts). 

    
    

• Prescription Eyeglasses  

  • Frames: A set allowance (e.g., $100–$200) toward the cost of frames. 

  • Lenses: Covers single-vision, bifocal, or trifocal lenses (sometimes fully, sometimes partially). 

  • Lens Enhancements: Discounts or partial coverage for anti-glare, transition, or high-index lenses. 

    
    

• Contact Lenses  

  • Either covers contacts instead of glasses OR provides an allowance toward the cost. 

  • Includes standard lenses but may have limits on specialty lenses (e.g., toric, multifocal). 

    
    

• Discounts on LASIK & Vision Correction Surgery  

  • Some plans offer discounts (typically 15-50% off) for LASIK or PRK laser eye surgery. 

    
    

What’s Usually NOT Covered? 

•  Medical eye conditions (e.g., eye infections, cataract surgery—covered by medical insurance)  Non-prescription glasses or sunglasses  Cosmetic lens options (e.g., designer frames, colored contacts, blue-light coatings) unless specified 

  
  

Types of Vision Insurance Plans 

• Employer-Sponsored Vision Plans – Often part of workplace benefits. 

• Private Vision Insurance – Purchased separately from providers. These plans offer access to a couple of different vision networks that include major chains, private practices, and online stores.  

• Medicare/Medicaid Vision Benefits – Medicare only covers medical eye care; Medicaid may cover basic vision services in some states. 

• Vision Discount Plans – Not insurance but offers reduced pricing on exams and eyewear. 

HEARING INSURANCE: Hearing insurance is a type of coverage that helps pay for hearing-related expenses, such as hearing exams, hearing aids, and other audiology services. It is often offered as a standalone plan or as part of a more comprehensive health, Medicare Advantage, or vision & hearing package.   

Hearing exams are sometimes covered by a person's basic medical insurance; however, hearing aids are not.  And there are no stand-alone hearing plans to cover hearing aids available at this time. Some companies offer a small hearing benefit bundled with dental and vision insurance.  

Medicare Advantage plans often have a hearing aid benefit, and a few stand-alone plans have a bundled product that covers Dental/Vision and Hearing in the same policy.  

FIXED INDEMNITY INSURANCE:   A fixed indemnity insurance plan is a type of supplemental health insurance that provides a set cash benefit for specific medical events or services. Instead of covering a percentage of medical costs like traditional health insurance, fixed indemnity plans pay a predetermined amount per service, regardless of the actual expense. 

Fixed indemnity plans typically cover: 

• Doctor visits (e.g., $50 per visit) 

• Hospital stays (e.g., $1,000 per day of hospitalization) 

• Surgical procedures (e.g., $500 for outpatient surgery) 

• Emergency room visits (e.g., $200 per visit) 

• Prescription drugs (set reimbursement per prescription) 

• Diagnostic tests (e.g., $100 per X-ray) 

• Payouts are fixed (not tied to actual medical costs) 

• No deductibles or copays 

• Cash payments can be used as you choose (e.g., to cover lost wages or other expenses) 

• Can be combined with traditional health insurance to help cover out-of-pocket costs 

  
  

Key Features 

• Payouts are fixed (not tied to actual medical costs) 

• No deductibles or copays 

• Cash payments can be used as you choose (e.g., to cover lost wages or other expenses) 

• Can be combined with traditional health insurance to help cover out-of-pocket costs 

  
  

Limitations 

• Not a replacement for major medical insurance (doesn't cover all medical costs) 

• May have benefit limits (e.g., only covering a set number of visits per year) 

• No coverage for pre-existing conditions in some cases 

• Doesn’t meet ACA (Affordable Care Act) requirements for minimum essential coverage 

HOSPITAL INDEMNITY INSURANCE: A hospital indemnity plan is a type of supplemental insurance that provides fixed cash payments when you're hospitalized due to illness or injury. It does not replace traditional health insurance but helps cover out-of-pocket expenses like deductibles, copays, and lost wages. These plans are often bundled with Medicare Advantage plans to help cover the cost of the more expensive copays and coinsurance found on these plans.  

What Does a Hospital Indemnity Plan Cover? 

Coverage varies by plan and can be customized to meet specific needs, but most provide fixed benefits for: 

• Hospital Admission  

  • Pays a lump sum (e.g., $1,000–$3,000) when you're admitted to a hospital. 

    
    

• Daily Hospital Stays  

  • Provides a per-day payment (e.g., $100–$500 per day) for each day you're hospitalized. 

    
    

• Intensive Care Unit (ICU) Stays  

  • Higher daily benefits (e.g., $200–$1,000 per day) if admitted to the ICU. 

    
    

• Surgical Procedures  

  • Some plans pay a set amount for inpatient surgeries. 

    
    

• Emergency Room Visits   

  • May provide a one-time cash payment for ER visits leading to hospitalization. 

    
    

• Extended Recovery Benefits  

  • Some plans offer payouts for rehabilitation, skilled nursing, or follow-up care after discharge. 

    
    

What’s Usually NOT Covered? 

• Outpatient care (unless specified) 

• Pre-existing conditions (or may have waiting periods)  

• Routine doctor visits & prescriptions 

Key Benefits of a Hospital Indemnity Plan 

• Pays cash benefits directly to you (can be used for any expenses) 

• Helps cover deductibles, copays, and lost income 

• No network restrictions – you can visit any hospital 

If you have any additional questions, contact our team today!