Cover Out-of-Pocket Health Costs With Supplemental Insurance
As deductibles rise, insurers are offering policies to cover out-of-pocket costs.

Health care costs are on the rise, and not just premiums. The average deductible for an individual with employer-provided coverage jumped from $646 in 2010 to $1,077 in 2015, says the Kaiser Family Foundation. So it’s no surprise that supplemental policies covering major out-of-pocket expenses for accidents, hospital stays or a serious illness are becoming popular. MetLife estimates that the number of supplemental plans offered industrywide has increased by more than 20% annually over the past few years. “We’ve seen exponential growth and interest from employers who are offering these products for the first time,” says Meredith Ryan-Reid, head of accident and health/worksite benefits at MetLife.
The policies—similar to Medicare supplemental policies—can cost from a few dollars to $150 per month. They can also be purchased directly from an insurer and are available in all 50 states and D.C. Benefits are paid to you when you file a claim, often a flat dollar amount per incident (for example, $3,000 if you have a skin-piercing fracture). It may seem like a small price to pay to protect against out-of-pocket expenses, including those you might not think of (say, a babysitter to watch your child while you get treatment). But read the fine print. A critical-illness policy might cover only one type of ailment, such as cancer. And preexisting conditions can be excluded for up to 12 months. Disciplined savers might funnel $150 a month into an emergency fund instead.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
Could This Little Known Data Shift Hurt Your 2026 Social Security COLA?
The BLS has changed how it measures the inflationary data that determines whether Social Security benefits will get a Cost-of-Living Adjustment (COLA). Will it hurt your benefits?
-
Financial Pros Provide a Beginner's Guide to Building Wealth in 10 Years
Building wealth over 10 years requires understanding your current financial situation, budgeting effectively, eliminating high-interest debt and increasing both your income and financial literacy.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online Bargains
Feature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2025
Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?
insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Is Amazon Prime Day? Everything We Know, Plus the Best Deals on Apple, Samsung and More
Amazon Prime Amazon Prime Day is four days this year. Here are the key details you need to know, plus some of our favorite deals to shop during the sale.
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage Rate
Becoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.