Thursday, June 28, 2007

Finding Credible Mini-Medical Insurance Plans

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Limited medical insurance plans are not created equal. Many plans in the market are priced cheaply but offer few real benefits which can cause frustration for both employees and providers. But, with a few helpful tips, employers can find credible plans at reasonable costs.

Orlando, FL (PRWEB) June 28, 2007 -- Its no secret that double-digit healthcare premium increases over the last several years have forced many employers to reduce or cancel healthcare benefits altogether. A number of insurance carriers have responded by offering limited medical plans for groups, sometimes referred to as mini-med plans or limited benefits insurance. In order to attract greater employee participation, some plans are designed based on how much the employer is willing to contribute and are offered for as little as $20 per month. But at the same time, such low cost plans provide very little real coverage and can create more confusion and frustration for providers and consumers than the benefits are worth.

But, there are credible limited medical plans available in the market place, and savvy employers can learn the differences and pick plans that provide valuable benefits at reasonable costs. So, how can employers who can't afford major medical group plans find reasonably priced limited medical insurance plans?

First, review the benefit plan summary to check for minimum coverage amounts for:

  • Hospitalizations: According to Christopher Lang, President & CEO of AgelessCare, $500 per day is the lowest credible daily rate. If possible, employers should purchase a plan with a rate that mirrors average negotiated hospital per diem rates of between $900 and $1,100. "If the daily benefit level is lower than $500, don't bother buying a plan that includes inpatient hospital coverage since it won't be worth the extra premium cost or hassle for providers and employees," says Lang.
  • Doctor Visits: Primary care office visit fees normally range between $65 and $120 per visit. Look for at least $40 per visit since this will often fund a good share of the cost of basic follow up visits, particularly if the provider offers a self-pay rate when the appointment is booked.
  • Accident Medical Expenses: Many high cost medical bills result from accidents. "Be careful to find a plan that is not limited to one-fixed amount per year, but instead, pays at least $1,000 per accident with a low deductible," cautions Lang.
  • ER Visits: Many limited medical plans include very small benefits for ER, such as $100 or less per visit. But, an average bill can range between $500 and $750 per visit. Lang says the per-visit ER benefit should be at least $250 to cover a meaningful portion of a typical bill.
Once the employer finds an insurance agency offering a credible mini-med plan, they should ask whether the agency has experience working in the healthcare provider community. Knowledgeable agencies should also understand why employees seek healthcare and how to help them maximize the limited medical insurance benefits provided.

About AgelessCare:
AgelessCare, LLC is a licensed general insurance agency serving more than 40 states. Product offerings include health and life insurance, healthcare discount programs, and nurse hotline services for groups. For more information, visit

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