Out-of-pocket costs for individuals with Type 1 Diabetes averages $2,500 a year for those with health insurance coverage.
“Health insurance plans do not cover all expenses and diabetes is just another example of why people today need to think about supplemental insurance.”Jesse Slome, director of the American Association of Critical Illness Insurance
Diabetes costs out-of-pocket can be $5,000 yearly
Diabetes costs – new study; June 3, 2020. Out-of-pocket costs for Americans who have type 1 diabetes average $2,500 a year. The study was published in JAMA Internal Medicine.
According to the study, eight percent of patients had more than $5,000 in yearly out-of-pocket expenses. The report attributes this to the likelihood of having a high deductible health insurance plan or other significant medical needs shares Jesse Slome, director of the American Association for Critical Illness Insurance.
The study is based on an analysis of 2018 data from more than 65,192 type 1 diabetes patients, ages 1-64, with private employer-sponsored insurance coverage. It did not include patients with Medicare or Medicaid or those without insurance. The mean age of the participant was 40.8.
Supplemental critical illness insurance is affordable planning option
“Health insurance plans do not cover all expenses and diabetes is just another example of why people today need to think about supplemental insurance to augment their health insurance,” explains Slome, AACII’s head. “This year alone millions of Americans will be diagnosed with cancer, have a heart attack or stroke. When they do, they will face serious gaps in their health insurance. Plus they’ll likely need to take time off from work for treatments or recovery time. It’s a huge gap people need to think about and plan for.”
While critical illness insurance policies do not cover diabetes, most cover between 12 and 16 different critical illnesses that impact individuals. “What do critical illness insurance policies cover?” Slome asks. It varies but most will cover end stage renal failure, major organ transplants, benign brain tumors, blindness or deafness, coma, permanent paralysis and severe burns.”
A policy for critical illness insurance costs anywhere from under $100 a year to around $500 a year. The costs will depend on age and whether one smokes as well as health conditions. Many companies today offer employer critical illness insurance on a voluntary basis. Experts share that it can be worth spending a few minutes to compare your offered coverage to an individual coverage available directly from insurance companies.