The ColoHealth Health Wealth Newsletter
February 2019
Vol. 9, Issue 2

It’s Ski Season: Don’t Forget to Equip an
Accident Plan!

Coloradans and ski enthusiasts have been enjoying the ski slopes for almost a month in spots like Telluride Ski Resort and Vail Mountain. As with all sporting activities, skiing comes with risk of accidental injury. When they do, you probably want to have a solid accident insurance plan on your side.

While low-cost accident plans do not replace health insurance, they will help you avoid a costly deductible just for an emergency room visit.

What is Accident Insurance?

This type of insurance pays for any medical expenses you incur due to an accident, up to a given amount (typically $5000). Similar yet distinct from health insurance, accident plans will pay all your accident related medical expenses after just a $100 deductible.

Everybody knows that going to the emergency room or an urgent clinic is ridiculously expensive. Since the average health plan deductible is now over $6000, most people find themselves paying out of pocket every time they have to rush off to the emergency room. If you have kids or participate in sports where you might get hurt and have to get x-rays, stitches, or other treatment–an accident plan will limit your costs to just $100, instead of $2000 or $3000 or more.

What is Covered in Accident Insurance Plans?

While accident plans will not cover you if you get pneumonia or cancer or have a heart attack, they will pay for virtually any kind of injury. Typical expenses covered by accident plans include:

• Stitches
• Concussions
• Fractures
• Dislocations
• Lacerations
• Dental injuries
• Eye injuries
• Burns

If the injury is serious and you end up in the hospital, your accident plan benefits can cover some or all of the deductible on your health policy.

Benefits of Accident Plans

One example of how an accident plan could benefit you would be if you decide go skiing, and have a health insurance policy with a $6500 deductible.

If you tear your ACL and have a $3500 medical bill, you would likely have to pay the entire amount out of your own pocket if you have not yet met your $6500 health insurance deductible. But if you have an accident plan, you only have to come up with $100.

Other benefits:

• Starts quickly
• Has low monthly premiums starting at just $24.75/month
• Can overlap disability insurance
• If you have both policies, money paid by your accident plan can be used on everyday expenses while waiting for the disability insurance elimination period to pass
• Can cushion the risk of a large deductible in the event an extended hospital stay is necessary

The enormous benefits of accident plans outweigh the low monthly premiums for most people. And, with many insurers competing for your business, you’ll find some have greater benefits than others.

Optimizing Health Coverage is Vital

As we discussed in Step 1 of the Financial Health Program, optimizing health coverage is important since many plans leave gaps in coverage. With accident plans, you’ll avoid paying high deductibles associated with health plans when involved in a small or a serious accident. Also, unlike health insurers who pay medical professionals and facilities directly, accident plans offer the injured person benefits while they recover.

If you happen to be a skier, check your skis to make sure they’re in tip-top shape; while you’re performing checks, make sure you are comfortable covering your deductible for a minor or catastrophic injury while hitting the slopes. If you need additional protection, go with an accident plan.

To your health and wealth,

Wiley P. Long, III
President – Colohealth

The Colohealth Health & Wealth Newsletter is published monthly and emailed to subscribers at no charge. Subscribe now to stay on top of the critical information you need to know about health insurance, healthshare plans and managing your finances to achieve financial security.