How to pay for major medical expenses: Utah hospital, accident, and critical illness insurance plans


One of the questions we get most often in our office about health insurance is, "what happens if I am in the hospital?" Some families ask this question because they have a very active family and are worried about broken bones and stitches. Others ask because they are concerned about a family member getting very sick.


Cost of a Hospital Stay

For hospital stays, most insurance companies require that you meet a deductible first before they will cover any expenses. After you meet your deductible your insurance will cover a percentage. Most commonly, insurance companies will cover 60%-90% after you meet your deductible. With Marketplace plans, you'll also have a maximum out of pocket amount. This is a stopping point for your share of medical expenses.


The maximum out of pocket expenses on the Marketplace range from $1500 to over $8000 per person. Private health insurance can be even more. High deductible plans and higher maximum out of pocket amounts are more popular because they come with much lower premiums. Some families are comfortable taking the risk of a high deductible because they are healthy and usually don't have big medical expenses.


Covering a High Deductible or Maximum Out of Pocket Medical Expense

Most families don't have thousands of dollars in savings to cover big medical expenses. Luckily there is a better way to cover the most common reasons that you would have major medical expenses. Most families have large medical expenses because of accidents, sickness and critical illnesses; like cancer, heart attacks and terminal illnesses.


Hospital sickness insurance, accident insurance and cancer insurance policies are inexpensive ways to cover major medical expenses. These plans can have daily benefits or a lump sum benefit option to help you cover your medical expenses.


Accident Insurance

Accident plans cover all sorts of accidents. From slips on ice, falling off a ladder, to sport injuries and more, accident insurance can cover some or all of your medical costs. If you or a family member end up in the ER or urgent care because of an accident, these plans will cover the x-rays, MRI scans, and other needed tests and procedures so that you can focus on getting better.


Hospital Sickness Insurance

Hospital sickness insurance plans can pay out a lump sum or a daily benefit if you are hospitalized because of sickness. Both types of insurance are very inexpensive options. You can also add on riders for ambulance rides, emergency room visits, out patient procedures and skilled nursing facility benefits.


Cancer Insurance & Critical Illness Insurance

These plans will pay out a large lump sum so that you can pay for medical expenses and loss of income and other needs so you can focus on getting better. These plans usually have a benefit of $10,000 to $100,000 that will pay you the lump sum on first diagnosis of illness.


Choosing and Enrolling in Plans

When it comes to choosing which type of plan or plans are the right fit for you, there are a few things to consider. First is your out of pocket maximum medical expense on your health insurance. Most of the time you will want your supplemental plan benefits to match this amount. Second, take into consideration why you want this plan. Ask yourself about your and your family's daily activities and family health history. If your family loves the outdoors and hikes, bikes or plays lots of sports, but are otherwise very healthy, you may only want an accident plan. If only one of you has a history of cancer in their family, only one of you may want a cancer insurance plan with a large benefit.

Our local Utah health insurance agents can go over your options, costs and how benefits would be paid out to you. You can see how your personal scenarios and concerns would be covered. Enrolling in supplemental plans can be done anytime of year. Contact one of our local agents today to review your options.


About Utah Avenue Insurance

Utah Avenue Insurance is your local health insurance and Medicare insurance experts. Our agents are here to help you with all your health insurance questions. Our service is always free. Utah Avenue can help you with marketplace (aka Obamacare) plans, private health insurance and Medicare. If you have questions about how your medical insurance plans work or need help enrolling in a plan, we can help you. As always, our service is free to you.


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699 S Main Street, Springville

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