Posts Tagged - ‘Mini medical’

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Mini-Med Health Care Policies Under Senate Investigation

Wednesday, December 1st, 2010

Mini-medical plans are controversial. On the one hand, they provide some coverage for emergency care, and in many cases are better than nothing. On the other hand, they often come with extremely low annual benefit payout limits that make them nearly useless if a person needs major medical treatment.

Mini-meds are typically offered by low-wage companies, and administered by major health insurance plan providers like Cigna and Aetna. A Senate committee is currently investigating the issue; the probe has been expanded from McDonald’s to other employers. The issue is that although policyholders are usually saddled with high medical bills, the plans are sometimes promoted as full-fledged comprehensive health care.

Although the healthcare reform law bans annual and lifetime limits, dozens of mini-med providers have been granted exceptions from that provision. Mini-meds are also subject to a lower medical loss ratio, which determines the percentage of premiums that must be spent on medical care.

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McDonalds, Other Businesses Exempt from Healthcare Reform Law

Monday, October 18th, 2010

Image: DRB62 under CC 3.0

There has been much concern surrounding healthcare reform’s impact on businesses. Many are worried that employers will drop their health insurance plans altogether, rather than complying with new requirements that increase the standard of care.

However, 30 companies and unions–McDonalds is the most popular–have received an exemption from that provision. The waiver must be renewed by Secretary of Health and Human Services Kathleen Sebelius each year until 2014. HHS made the judgment that rather than risking companies discontinuing seasonal and temporary workers’ health coverage entirely, it makes more sense to allow them to retain the inferior mini-med plans with extremely low annual limits of coverage. This will be the case for several years, until the health insurance exchanges are fully operational to give such employees more options.

Other firms are protesting this move, because small businesses will suffer while the big names with lobbying influence can get around the unfavorable provision.

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Mini Medical Health Insurance

Wednesday, June 16th, 2010

Mini medical health insurance plans (also known as mini-meds) are limited benefit plans. Similar to indemnity plans, they offer only bare-bones coverage levels.

The difference is that mini medicals pay health care providers a fixed amount specified in your contract. You will be responsible for paying the remainder to doctors, hospitals, etc.

These plans have very low premiums, and can be helpful if you can find low cost providers that accept them. On the other hand, mini-meds have been criticized for misleading advertising that implies that they offer full-fledged health insurance, which they do not.

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