Tag Archives: high deductible plans

Beware of LIMITED BENEFIT health plans

More and more Americans are opting for “bare bones” coverage to insure their health.  Sometimes they know what they’re buying, but often times they don’t.

In an article published by the Wall Street Journal, the paper makes the case that many consumers buying low end coverage are duped into buying those limited benefit plans by salespeople whose smooth talking goes a long way to convincing people to do something that is not in their best interest.  The article focuses specifically on sales tactics from MEGA Life and NASE (national association for the self employed), two companies marketing health plans under the umbrella of “HealthMarkets” based out of Oklahoma City.

According to the article, consumers “thought they were buying full insurance for their families but in reality they were buying far from that.” Indeed, in some instances, hospital benefits were limited to $300 a day.

Click here for a link to the story from the WSJ

COMMENTS:
Nothing new here folks–same old warnings that professional insurance brokers (such as myself) have been giving to people for years. In fact, the article’s author (a journalist) actually states the correct solution to the problem of high premiums:

Rather than opting for a limited-benefit plan, some families should consider a comprehensive plan with a high deductible, which may not be much more expensive, or a “catastrophic” medical plan.

Bingo!!


There ya go folks. If you’re not inclined to believe someone such as myself (with almost 30 years experience brokering health plans to small business owners and individuals) perhaps you’ll believe a journalist. (dripping sarcasm here, of course)