The Limited Appeal of Limited-Benefit Insurance - On Health and Money (usnews.com)
All health insurance is “limited” whether we realize it or not. Making the coverage limits transparent to consumers is good public policy. The public perception that health insurance could pay benefits greater than the premiums paid is a myth that must be busted. Old style major medical insurance that covers all ordinary and necessary medical expenses is. The new limited benefit plans present us with a simple, straightforward and honest approach to health insurance.
The strongest argument for limited benefit insurance is that it immediately solves the issue of insurance affordability. Our society's ability to provide medical services will always outpaces our ability and willingness to pay for that service and this is the core issue of our national health care crisis. Limited benefit policies allow buyers to purchase the amount of benefits they can afford or wish to budget in the same manner as they select benefit limits for their auto, homeowners or other types of insurance. A growing number of high quality limited benefit health plans make it possible to purchase almost any dollar amount of insurance your budget will allow. There is no need to rely on a third party government or health plan administrator to set coverage limits based on criteria outside of the policy owners’ control.
There are some who will continue to argue for universal affordable health care at some fuzzy time in a mythical future economy. But right here and now limited benefit plans are our best approach to solving our health insurance problems. My company MedSave.com helps tens of thousands of consumers sort through their health insurance options. We understand that there is no perfect insurance solution that ensures great medical care to everyone at a cost that is not a financial burden. In 2006 MedSave.com began offering a new array of limited benefit insurance in most states alongside the least expensive traditional major medial insurance plans. Based on overwhelming public response, we are convinced that limited benefit insurance is the future of health insurance. In fact, we are concerned that despite all the efforts to point out the limitations of coverage in these new plans, consumers almost automatically select the limited benefit plans over traditional insurance.