There are three main types of medical disability insurance coverage. The first type is generally provided by employers to employees who are disabled while on the job, and this coverage falls under the workers' compensation insurance plan, which rolls into the employee's health care package. The second type is provided under the Social Security Administration's (SSA) Medicare program, and provides for people who are screened and deemed to be "disabled" according to the SSA's definition of disability. The third type of medical disability insurance coverage is private insurance purchased by an individual to supplement employer-sponsored workers' compensation insurance or provide for the self-employed workers who are at risk for on the job injury. Each type of medical disability insurance coverage is a valuable addition to regular health insurance and can become invaluable should an accident occur.
Medical disability workers' compensation insurance is a type of medical disability insurance that is provided by an employer to an employee under specified terms. This type of policy will generally allow for compensation for injury, rehabilitation, and lost income due to temporary or permanent disability up to a certain set maximum. It is very important to review and be familiar with what your employer offers in terms of disability insurance under worker's compensation to assess whether those benefits will be adequate to meet you and your family's financial needs should you become temporarily or permanently disabled.
The Social Security Administration's Medicare program provides disability insurance to any worker who is eligible to collect social security benefits. Eligibility for this type of insurance depends solely on meeting the criteria in terms of work hours for collecting social security benefits. Certain types of medical conditions are also considered to be long-term or permanent disabilities and are automatically covered under social security medical disability insurance. Social security medical disability insurance is available both to eligible workers and to their spouses and qualified dependents.
Private medical disability insurance is a type of insurance policy that a worker may opt to purchase to supplement an employer-sponsored workers' compensation based disability insurance policy. Self-employed workers, especially those in dangerous fields such as construction, may also elect to purchase a private medical disability insurance policy to protect them in case they become temporarily or permanently disabled while in the course of their daily job duties. Private medical disability insurance can provide coverage for financial upsets including lag time between when claims are filed and reimbursement is made, waiting periods while medical exams are conducted to determine the extent of the disability and the prognosis, low policy maximums that will not allow for adequate rehabilitation before a return to work, unexpected financial costs including loss of work time and income and loss of spousal income because of the care a disabled worker may need, out of pocket medical expenses that are not covered under a traditional health care policy, and other unforeseen issues that may arise. The rising costs of health care and prevalence of disability has made private medical disability insurance a more popular product in recent years.