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Limited Medical Benefit Plans |
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Limited Medical Benefit plans-Also known as mini-meds, pay a base benefit for specific services and treatment. The benefits are not as rich as an HMO,or PPO plan, but is a much more affordable coverage option for the uninsured or underinsured. As healthcare premiums continue to increase annually these plans tend to attract the younger, and healthier employee as well as the uninsured. Benefits included on a scheduled basis:
- Hospital Stays
- Emergency room visits
- Surgeries
- Outpatient Diagnostic Testing
- Preventive care
- Prescription drugs
- Vision
- Office visits
- Survivor benefits
These products differ by state and insurance company. Exclusions also vary widely. Pre-existing conditions apply even though some states allow companies to guarantee issue the insurance. Most plans have 20 variables and therefore the premiums may vary widely. Depending on the demographics of the employer group 2 or 3 different plan options may be offered simultaneously. Mini-meds are sometimes used as a supplemental plan for an HSA for employees that don’t want the full exposure of the high deductible. The premiums are also much more stable since these plans are based on a scheduled benefit.
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