Mini Medical Plans - Healthcare Reform and Employers

Mini Medical Plans - Healthcare Reform and Employers

Mini medical plans became very popular over the last decade or two. Small business owners who otherwise could not afford to offer their employees health insurance favored the plans with a something is better than nothing mentality. These barebones plans offer limited coverage for doctor visits, routine exams, and certain prescriptions. Some cover certain types of hospitalizations. Most, unfortunately, do not cover catastrophic illness or injuries. In terms of the amount of coverage, these types of limited plans usually pay less than 60% of covered medical expenses. When compared to having no insurance, many small employers feel these plans provide at least something in terms of helping with medical costs.

While mini medical plans do not offer the extensive coverage of a traditional health insurance plan, and they do not pay 80% or similar figures for covered expenses, they do offer an affordable option that is better than no coverage. In terms of routine doctor visits, for example, instead of an uninsured patient paying or more for a doctor visit plus potentially hundreds for prescriptions, patients enrolled in a mini plan pay less. Their co-pay for a routine doctor visit might be 40%, or . Their co-pay on prescriptions might be 50%, saving a decent amount over paying out of pocket.

Healthcare

However, healthcare reform initiatives may eliminate mini medical plans as an option for small employers. Penalties for substandard coverage could cause employers to choose offering no healthcare coverage rather than a mini plan or expensive traditional health insurance. Healthcare reform seeks to penalize substandard plans that pay less than 60% of an insured's medical costs and expenses for covered conditions and treatments. That would mean an employer offering a more affordable mini plan option as opposed to no insurance at all could suffer penalties.

Much debate has surfaced in terms of the pros and cons of mini medical plans. Some are concerned with employers offering employees substandard plans. Some argue that something is better than nothing. However, without clear direction, the most likely people to suffer from healthcare reforms intended to help will be those for whom mini plans are their only affordable option. That includes not only small business owners trying to provide some kind of benefits for their employees, but also the employees who only other option is paying out of pocket for all medical expenses. The intention of healthcare reform is to make good healthcare available to all. Unfortunately, if it remains unaffordable, the people who need coverage the most will still remain on the fringe.

If you need assistance in locating particular coverages at a pre-determined price, we can help save on health insurance.

Mini Medical Plans - Healthcare Reform and Employers