As with all types of insurance, several myths about health insurance coverage survive despite clear evidence that debunks them.
This is understandable.
Health insurance, whether through a provincial plan, supplemental plan, or an employer-sponsored package, involves many different coverages, each with its own limit, deductible, and exclusions.
Depending on your plan, expenses related to prescription drugs, dental and vision care, and an assortment of enhanced services, may be partially or fully covered.
These details can be confusing to consumers.
With this in mind, we'll clarify a few common areas of confusion below.
What follows is not an exhaustive guide to supplemental health insurance.
Rather, it's a glimpse at fallacies that continue to endure though they should have been abandoned long ago.
Myth: "Young People Don't Need Extended Health Insurance" It's tempting to think you can avoid the cost of a supplemental plan if you're young.
After all, if you rarely visit the doctor's office, government health coverage should suffice.
The problem is that unforeseen circumstances can lead to medical bills that exceed the coverage limits of your provincial plan.
For example, suppose you need an emergency cholecystectomy (removal of the gallbladder).
Or, what if you injure yourself playing sports, and require knee arthroscopy followed by rehabilitation? Such incidents are impossible to predict, and can occur regardless of your age or health.
Moreover, they can add up to tens of thousands of dollars in medical bills.
Once the limits of your government health coverage are exceeded, you'll be expected to pay the difference.
A supplemental insurance plan will help mitigate the cost.
Myth: "Provincial Health Coverage Is Sufficient" This fallacy is an extension of the one discussed above.
Many consumers wrongly believe their government health insurance will cover all of their medical expenses.
There are two notable problems.
First, realize that provincial plans only cover basic services.
Second, there are limits placed on each type of coverage.
For example, in Ontario, coverage for hearing aids is limited to $500; coverage for chiropractor visits is limited to $150 per year; and government insurance will only cover 75 percent of costs related to medical equipment for those under the age of 65.
Each province and territory maintains its own limits.
Provincial health plans are only sufficient if you intend to use minimal health care services.
Otherwise, a supplemental plan is valuable.
Myth: "Your Employer's Group Health Insurance Plan Is Sufficient" Because every group plan is different, whether yours is adequate depends on your employer and personal circumstances.
Some employer-sponsored health plans offer limited coverage to employees' spouses and family members.
Others do not.
Some offer much more flexibility than other plans.
And some provide more room than others for customization given each employee's unique needs.
If you happen to work for an employer that offers an exceptionally generous health insurance package to employees, you may be able do without supplemental coverage.
If, on the other hand, your employer's insurance has limited maximums with high deductibles, you may be wise to look for an extended health plan.
The only way to know whether supplemental coverage is warranted is to carefully review your employer's plan.
Compare its limits and deductibles to your needs and financial resources.
Myth: "Supplemental Health Insurance Is Expensive" There's a good reason this fallacy exists: many insurers quote high premiums given the coverages they offer.
But they do not represent the industry "standard.
" In fact, there is no standard.
Most consumers would be surprised to learn how widely quotes for supplemental health coverage vary from insurer to insurer.
One of the advantages of buying a supplemental plan is that you can customize it according to your needs.
Provincial and group plans rarely offer the same level of flexibility.
This is a compelling reason to compare quotes from multiple health insurers, choosing the one that offers sufficient coverage at the best rates.
It takes moments to compare quotes.
And doing so can result in enormous savings down the road.
This is understandable.
Health insurance, whether through a provincial plan, supplemental plan, or an employer-sponsored package, involves many different coverages, each with its own limit, deductible, and exclusions.
Depending on your plan, expenses related to prescription drugs, dental and vision care, and an assortment of enhanced services, may be partially or fully covered.
These details can be confusing to consumers.
With this in mind, we'll clarify a few common areas of confusion below.
What follows is not an exhaustive guide to supplemental health insurance.
Rather, it's a glimpse at fallacies that continue to endure though they should have been abandoned long ago.
Myth: "Young People Don't Need Extended Health Insurance" It's tempting to think you can avoid the cost of a supplemental plan if you're young.
After all, if you rarely visit the doctor's office, government health coverage should suffice.
The problem is that unforeseen circumstances can lead to medical bills that exceed the coverage limits of your provincial plan.
For example, suppose you need an emergency cholecystectomy (removal of the gallbladder).
Or, what if you injure yourself playing sports, and require knee arthroscopy followed by rehabilitation? Such incidents are impossible to predict, and can occur regardless of your age or health.
Moreover, they can add up to tens of thousands of dollars in medical bills.
Once the limits of your government health coverage are exceeded, you'll be expected to pay the difference.
A supplemental insurance plan will help mitigate the cost.
Myth: "Provincial Health Coverage Is Sufficient" This fallacy is an extension of the one discussed above.
Many consumers wrongly believe their government health insurance will cover all of their medical expenses.
There are two notable problems.
First, realize that provincial plans only cover basic services.
Second, there are limits placed on each type of coverage.
For example, in Ontario, coverage for hearing aids is limited to $500; coverage for chiropractor visits is limited to $150 per year; and government insurance will only cover 75 percent of costs related to medical equipment for those under the age of 65.
Each province and territory maintains its own limits.
Provincial health plans are only sufficient if you intend to use minimal health care services.
Otherwise, a supplemental plan is valuable.
Myth: "Your Employer's Group Health Insurance Plan Is Sufficient" Because every group plan is different, whether yours is adequate depends on your employer and personal circumstances.
Some employer-sponsored health plans offer limited coverage to employees' spouses and family members.
Others do not.
Some offer much more flexibility than other plans.
And some provide more room than others for customization given each employee's unique needs.
If you happen to work for an employer that offers an exceptionally generous health insurance package to employees, you may be able do without supplemental coverage.
If, on the other hand, your employer's insurance has limited maximums with high deductibles, you may be wise to look for an extended health plan.
The only way to know whether supplemental coverage is warranted is to carefully review your employer's plan.
Compare its limits and deductibles to your needs and financial resources.
Myth: "Supplemental Health Insurance Is Expensive" There's a good reason this fallacy exists: many insurers quote high premiums given the coverages they offer.
But they do not represent the industry "standard.
" In fact, there is no standard.
Most consumers would be surprised to learn how widely quotes for supplemental health coverage vary from insurer to insurer.
One of the advantages of buying a supplemental plan is that you can customize it according to your needs.
Provincial and group plans rarely offer the same level of flexibility.
This is a compelling reason to compare quotes from multiple health insurers, choosing the one that offers sufficient coverage at the best rates.
It takes moments to compare quotes.
And doing so can result in enormous savings down the road.
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