Wednesday, 25 January 2006
The Appeal of Limited Benefits
As it becomes more and more expensive to offer employees full health insurance coverage, employers are searching out more affordable alternatives. A solution that’s picking up steam is offering cheaper, less-comprehensive plans, known as limited benefit plans, reports Blue Cross Blue Shield (via the Wall Street Journal).
Limited health plans typically only cover the basic visits to the doctor, leaving individuals to foot the bill for their hospital and emergency care.
Currently there are about 1 million people with these plans, and they’ve become a significant growth product for insurers. Big insurance carriers such as Aetna already have developments in the works to meet growing demand by broadening their limited plan offerings.
Critics claim that because limited plans only cover routine care, consumers are left completely vulnerable to long-term illness or unexpected accidents – something insurance typically is supposed to protect against.
Yet others insist that when your options are down to limited coverage or nothing…limited coverage will win every time.
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