Mini-Med Plans Could be an Option For Low Cost medical Insurance.
As millions struggle to deal with the burgeoning costs of medical insurance, some employees and employers are turning to a relatively new product being offered by insurance companies. Mini-Med plans. The Mini –Med plan provides minimal coverage but at a minimal cost, so for many individuals and small businesses that cannot afford traditional health benefits they are a viable, if not perfect alternative.
However consumers and human resource professional alike need to be thoroughly aware of exactly what a Mini-Med plan is and is not. Mini-Med plans are affordable medical insurance. A Mini-Med plan should not be confused with a discount health plan, or discount health card which are not medical insurance.
Mini-Med plans are designed to help with the costs of day–to-day medical expenses, such as doctors visits and diagnostic tests, and they may cover some hospitalization, but they are not designed to offer any kind of catastrophic or major medical coverage. Under a mini-med health insurance plan participating health practitioners are paid directly a set fee for service. For example a doctor’s visit may be covered for $75.00. If the visit is $100.00 the person with the policy would still be responsible for the other $25.00.
Some Mini-Med plans do have a PPO component, and while there is no penalty for going outside of the networks under such plans, there are discounts for using providers in network. So in other words if the holder of the affordable health insurance policy receives a 25% discount for a doctor visit in network, and the plan pays $75.00 per office visit, in the case of that same $100.00 office visit, the patient pays nothing.
Many employers are attracted to the Mini-Med plans because it allows them to offer at least some kind of low cost benefits to employees that cannot afford more expensive coverage, or are not otherwise eligible for traditional major medical plans, such as part time or temporary employees. Mini-Med Plans can cost as little as $40.00 per month.
But individuals and benefits professionals are advised to be sure they clearly understand a Mini-Med low cost health insurance plan before they purchase it for themselves or offer it to their employees. Since Mini-Med plans are relatively new in the market place, they can be confusing. And according to several insurance professionals some are intentionally designed to be so. The best advice that is given is to avoid Mini-Med plans with a co-pay; they are often not what they seem. Stick with an indemnity Mini-Med plan. These are inexpensive basic health insurance plans that pay out fixed benefits; there are no deductibles, no co pays and less room for confusion and errors.