Insurers eye market for supplemental health coverage to fill various gaps

Kaiser Health News / The Washington Post, February 7, 2014

As out-of-pocket medical costs grow for many Americans, the insurance industry is offering a way to help and, at the same time, expand its business: by selling supplemental policies that may fill the gaps for consumers. Insurers are increasingly marketing these limited policies that pay cash after a hospital stay or specific disease diagnosis, such as cancer. Such products, which cost less and provide fewer benefits than conventional insurance, can play a role similar to "Medigap" coverage, which fills holes in the Medicare program for seniors, insurers believe.


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