DEFINITION of 'Ancillary Benefits'

A secondary type of health insurance coverage that covers miscellaneous medical expenses that are incurred during a stay at the hospital. Ancillary benefits can cover expenses such as ambulance transportation, blood, drugs and medical supplies like bandages. These benefits are usually layered on top of major medical coverage.

BREAKING DOWN 'Ancillary Benefits'

Ancillary benefits are offered to cover those expenses which many neglect to factor into the cost of healthcare. They are usually quoted as a multiplier of daily benefits provided by the hospital. For example, an ancillary policy may cover 20-times this daily benefit.

RELATED TERMS
  1. Unallocated Benefit

    A provision available in health insurance policies, where the ...
  2. Medical Expenses

    Any cost incurred in the prevention or treatment of injury or ...
  3. Commercial Health Insurance

    A type of health insurance that covers medical expenses and disability ...
  4. IRS Publication 502: Medical And ...

    A document published by the Internal Revenue Service detailing ...
  5. Coordination Of Coverage

    A review or modification of an individual's or business’ insurance ...
  6. Channeling

    A commercial insurance policy which insures employees and affiliated ...
Related Articles
  1. Insurance

    5 Alternatives to Traditional Health Insurance

    Discover five of the most popular alternatives to traditional health insurance plans, alternatives that are increasingly popular as health insurance costs rise.
  2. Insurance

    Do This If Health Insurance Doesn’t Cover Your Bills

    Health insurance doesn't pay enough to help the millions of consumers who are drowning in medical debt. Are there any other options to soften the blow?
  3. Retirement

    Planning for Healthcare Costs in Retirement

    Healthcare often is the highest cost during retirement. Here's how to plan for and possibly buck that trend.
  4. Insurance

    How To Avoid Medical Debt

    Find out what you can do to avoid a financial meltdown when there's a medical emergency.
  5. Insurance

    4 Reasons Why Waiting To Buy Life Insurance Is a Bad Idea

    Understand the benefits of applying for and securing life insurance coverage while you are young and healthy, and learn the cost of waiting to get coverage.
  6. Insurance

    Essential Health Benefits Under The Affordable Care Act

    Under the Affordable Care Act, certain preventive health services and these 10 essential health benefits are the minimum requirements for many health insurance plans.
  7. Insurance

    7 Industries Benefiting From Obamacare

    Though the medical industry fears government intrusion, certain sectors in healthcare will benefit from Obamacare in the long run.
  8. Insurance

    What You Need To Know About Student Health Insurance

    Before heading off to college, read up on health insurance plans.
  9. Insurance

    6 Alternatives To Health Insurance

    Not having health insurance doesn't mean that you have no alternatives. Here's what you can do to reduce your healthcare costs.
  10. Insights

    The Top Medical & Healthcare Software Companies

    These are the top medical software companies--a growing and dynamic market ripe for investing.
RELATED FAQS
  1. Why would you want a monthly benefit versus a daily benefit?

    An insurance benefit is the amount of money paid to or on behalf of the policyholder. Depending on what kind of insurance ... Read Answer >>
  2. What are catch-up contributions for Health Savings Accounts (HSAs)?

    Learn about Health Savings Accounts (HSAs) and how an eligible individual of age 55 or older can make additional catch-up ... Read Answer >>
  3. Does a Flexible Spending Account (FSA) cover braces?

    Learn about Flexible Spending Accounts (FSAs) and how funds from these accounts can be used to cover costs associated with ... Read Answer >>
Hot Definitions
  1. Restricted Stock Unit

    Compensation offered by an employer to an employee in the form of company stock. The employee does not receive the stock ...
  2. Operating Ratio

    A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. Calculated as:
  3. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  4. Pro Forma

    A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results ...
  5. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center