A limited medical plan is a form of supplemental health insurance that can be used with or without a major medical plan. Limited medical plans have a set amount of money for treatment that they give to you to pay for common medical expenses. They recognize that common services like wellness visits can sometimes turn into a financial strain for people. Since this type of insurance does not cover everything due to a predetermined limit on what you receive, you will want to look closely at the benefits before choosing a plan.
It can be helpful to pair a limited medical plan with a major medical plan. Doctors visits and treatment are extremely expensive and insurance companies have responded to that by raising the deductibles on people’s plans. If you have a limited medical plan, you can use the money it gives you to either pay for the coinsurance or help pay for what would be out of pocket to cover the deductible.
What is the difference between limited medical and major medical insurance?
Limited medical insurance tends to be easier to be approved for than major medical insurance. Limited medical reimburses you with a set amount for those everyday medical expenses with a set limit whereas major medical insurance has a deductible you have to reach before the insurance will cover a certain percentage of care.
Major medical has higher premiums than limited medical insurance because it covers a wider range of services as opposed to the limited plan. The limited plans are designed to help fill the gap that is caused by large deductibles of major medical plans which is why it can be so helpful to have both plans.
The best way to use limited health insurance is with your primary insurance because once that deductible is met you will find that the primary will cover more expenses. There are many that will use solely limited health policies as their insurance due to the price of the premiums on major medical insurance plans. However, this is not recommended as there may be tax penalties for not having primary health insurance.
Limited medical insurance policies provide great aid whether paired with a major or used as your primary medical insurance. It isn’t offered in every state, but if it is available in yours, it is coverage that you would want to look into utilizing. If you have any questions or concerns talk to your Total Benefit Solutions, Inc health insurance specialist at (215)355-2121