What Is Limited Benefit Health Insurance?
Limited Benefit health insurance plans are controversial because they do not always offer key state-mandated coverage such as coverage for diabetes supplies or screening tests like mammograms. These are "bare bones" policies that have a very low benefit limit of about $1,000-$10,000 a year generally. They may cover only specific types of events such as accidents, surgery or a limited hospital stay.
These types of plans are not offered in every state. They are usually very inexpensive, sometimes as low as $10 a month, but you get what you pay for essentially. The benefits received are very limited since the premium is so low. Some supporters of limited benefit health insurance say it is great for individuals who cannot afford comprehensive health insurance or young people who are in good health. Almost 16 percent of Americans have no health insurance whatsoever. Arguments against limited benefit health insurance are based on the fact that if a major illness or injury were to afflict the policyholder, they might be unable to afford treatment or go into debt to pay for medical expenses. High medical bills are one of the leading causes of bankruptcy in the United States.
It is always a good idea to purchase the highest amount of insurance you can afford. However, your health insurance choice is completely up to you. Do the research and look at the risks and benefits of any policy you are considering buying. When you've decided on the benefits you really need in a health insurance policy, use the InsuranceBureau form to get quotes on health insurance policies from insurance companies in your area.
Sources
- Income, Poverty, and Health Insurance Coverage in the United States: 2006. (2007). Retrieved May 2, 2008, from http://www.census.gov/hhes/www/hlthins/hlthin06.html
- What Types of Health Insurance Are Available? Retrieved May 5, 2008, from http://www.naic.org/consumer_health_types.htm
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