Unconventional Health Care Plans Have Drawbacks
Health insurance shoppers should do their homework before settling on an unconventional plan, the National Association of Insurance Commissioners says
Consumers considering an unconventional plan should be aware of the plans' benefits and limitations, the National Association of Insurance Commissioners suggests.
Some people may be enticed by high-deductible plans, which offer comprehensive coverage but only kick in at catastrophic levels of cost. Having a high deductible - as any smart insurance consumer knows - will mean lower premium costs.
But the NAIC cautions that people should only rely on a high-deductible plan if they have the cash to pay large deductibles or medical expenses.
Limited benefit plans are another type of unconventional plan, but unlike high-deductible plans they don't offer comprehensive coverage. Limited plans do not cover many kinds of medical expenses; they also have higher copayments and deductibles than comprehensive plans.
And limited plans cap the benefits they provide, meaning that they can leave consumers on the hook for medical expenses above the cap amount.
People may consider unconventional plans if they want to save money on insurance, but the plans have drawbacks. It may be in a person's best interest to shop for coverage online.
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Posted: January 27, 2010
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