You may have heard terms such as mini medical plans when searching for health insurance options. If you need an affordable plan that stays within your limited budget, plans that offer less coverage at a cheaper price may be a suitable option. If you do not know what mini medical plans cover or their difference when compared to other types of health insurance, the following is meant to help familiarize you with the term. Hopefully, by highlighting the differences and things to look for in such plans, you can make a more educated decision.
1. Mini medical plans are cheaper because they offer fewer benefits. Lower lifetime benefit amounts, higher deductibles, and more limitations on care are common.
2. How does your deductible work? Many of these plans do not pay on the first dollar as major medical plans do. That means the cost of your medical treatments must be paid out of pocket until those expenses reach a predetermined threshold. For example, hospital stays may not be covered unless they last more than 48 hours or exceed a specific billing amount. In that regard, mini medical plans are more similar to catastrophic coverage than major medical coverage.
3. Mini medical plans have other loopholes major medical plans do not typically have. These loopholes include annual caps on treatments for specific events such as a $2,500 limit on emergency medical care. The limitations and annual caps will be listed as part of the terms of the policy. You should review those terms carefully to ensure your needs are still realistically met.
While mini medical plans may seem like an ideal option for people without insurance, self-employed people, or small business owners wanting to offer benefits to their employees on a budget, reading the fine print will ensure the best outcome. A healthcare plan that does not meet the needs of its participants can be as useless as having no insurance at all. Therefore, this is one area of medical care and insurance that should warrant close scrutiny. If the plan does not cover the medical expenses you need, it is simply a waste of money. Often times, when viewed in light of premiums combined with out of pocket expenses, the true cost of mini medical plans is not much lower than the cost of a good major plan. Naturally, each individual and each company is different, but due diligence ensures better results for your search.
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Sean L Johnson is a journalist for Health Insurance Buyer a referral service that refers consumers to the insurance carriers that can best fit their wants and needs. Get a free reduce quote today at www.health-insurance-buyer.com