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.

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