"Stacking" of limited benefit insurance

KM | April 20, 2008

Q: I currently have a limited benefits health plan. Can I combine this plan ALONG with Value Health Plan to help pay a claim? Would I be able to conjointly use them to pay any "gaps" in coverage?

A: Yes, limited benefit insurance is designed to be stacked to boost the overall level of protection. Unlike other types of health insurance, there is no "offset" of benefits because of other insurance. Since benefits are defined in dollars for specific treatment rather than as a portion of expenses, this makes it possible to use excess coverage in one expense to fill gaps in another plan as you suggest. For example, if a major medical policy has a $1000 deductible that is applied to doctors visits and pre-admission lab tests and the insured has two supplemental policies that each pay $500 per day of hospital confinement, then the money from the limited benefit plans could be used to pay the expenses under the deductible on the other policy. As a result, limited benefit polices are an increasingly popular way for individuals to deal with the risks of high deductible employer insurance plans and Health Savings Account plans.

Other plans that can be "stacked" are Value Benefit Plans (Value Health, Value Med, Value Hospital, Value ER, Value 24 Hour Accident), Basic Health Insurance and Core Health Insurance.

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