Montana Life and Health Guarantee Association

A: Supplemental health insurance like "Basic Health Insurance" is meant to be easy and inexpensive. Supplemental insurance is exempt from many of the legal provisions that control other types of health insurance and it so difficult and unaffordable. One of the differences, as mentioned in this case, is that supplemental insurance is not included under each state's guarantee association program. What this means to you is that in the unlikely event that the primary insurance company (Markel Insurance) goes bankrupt, the state of Montana does not step up to guarantee that your claims are paid. There are also other legal differences between Basic Health Insurance and other types of regular health insurance under Montana law. These distinctions make Basic Health Insurance attractive to people who have problems with other types of health insurance. The important thing is to understand what insurance options are available to you and the limitations of the insurance coverage that you have. Be sure to understand that Basic Health Insurance is not comparable to regular major medical insurance in terms of the amount and range of coverage provided. This is why it is called a "supplemental insurance" even though some people who cannot afford any other health insurance use it as a temporary alternative to having no coverage at all.