Junk health insurance plans — also known as mini-med or limited benefit plans — are often touted as offering minimal coverage at a lower price to employees who would otherwise be unable to afford health coverage.
Sounds like a good deal, right? Wrong. The truth is that enrollees receive such minimal coverage that, in many cases, they might as well have no coverage at all. Many companies have coverage caps at $2,000, for example, which means that plan participants must cover any costs exceeding this amount. Other plans don’t pay a dime for a hospital stay.
For all its shortcomings, PPACA’s MLR provision kills off these kinds of plans with its 80-20 profit stipulations. Now, however, insurers are fighting to revoke these restrictions, so that they can keep selling a type of plan that is, for obvious reasons, highly profitable. The White House is considering these objections as regulation continues to be refined — so now is the time to voice your opinions. What do you think about mini-med plans?