Advantages of Limited Medical Benefit Plans

For individuals and groups, limited medical benefit plans offer affordable health insurance for individuals and provide a low cost alternative to major medical insurance plans. These low cost health insurance alternatives usually include capped benefits with "bare bones" health insurance that covers everyday basic health care needs such as doctor's visits, prescription drugs and basic hospitalization. Due to the restriction in coverage, limited medical benefit plans can be issued with few restrictions up to age 64. 

Limited plans are a relatively newer type of individual and group health insurance programs and offer protection for individuals who may not otherwise have coverage. Originally designed to provide a solution to self employed individuals and others outside of the usual employee health care plans such as part time workers and students, limited medical benefit plans have now become more mainstream nationwide. 

Know What You're Buying

In spite of the rising popularity of this type of insurance, there is growing concern among the public and lawmakers that has caused limited benefit plans to be scrutinized - particularly due to unscrupulous sales tactics used by some insurance agents. The dissatisfaction among the public isn't so much the coverage of these plans but rather the way some insurance companies and agents promoted them as a substitute for a more comprehensive policy.  

Much of the debate stems from the resemblance to full coverage health insurance plans such as co-pays and other similar features. Some argue this leads consumers to feel like they have more protection than what these plans actually provide while others maintain that limited medical benefit plans offer affordable health Insurance for Individuals that otherwise would have no coverage. 

If you're considering this type of policy, make sure you have a thorough understanding of the coverage or more importantly, lack thereof before signing up. These plans are not designed to provide the type of coverage most families or older people need but are certainly better than no coverage at all. If you are young and healthy, looking for affordable insurance or if you can't afford the cost of major medical insurance, then limited medical benefit plans might make sense for you.

For more information, feel free to contact us and we'll be happy to help.