USA Today last week ran an interesting story about a new breed of health plan that’s been hitting the markets: limited medical benefit plans.
Policyholders for these plans pay low premiums to get the illusion of coverage. When an enrollee actually gets sick, they’ll find they’re insurance to be little more than a bandaid on a broken bone.
Some policies — such as one offered by Aetna — cover as little as $2,000 a year. So as long as you have an emergency that doesn’t cost more than $2,000 you’ll be fine. But other than that….
I bet the premiums paid add up to more than what you actually get out of the coverage.
Seems to me this does exactly the opposite of what a good health coverage policy is supposed to do. We buy health care as a safety net to protect us against financial ruin. But these plans are like a safety net that the rats chewed through.