NAIC: Shop Carefully When Weighing Discount Health Insurance

01/28/2010

A group of state insurance officials is urging consumers to shop carefully when considering offers for health insurance plans that carry high deductibles and other money-saving features.

According to the National Association of Insurance Commissioners, limited benefit health insurance plans tend to cover fewer types of medical expenses than a comprehensive policy, and also tend to have higher co-insurance payments, co-payments and deductibles. Some also carry caps on the amount that will be paid out per episode of illness, which can leave a person with high out-of-pocket expenses, even with a policy.

With these things in mind, the NAIC advises people to weigh the current and future medical needs of themselves and their families, and to be fully aware of the coverage limitations that a plan may have.

Some people may also opt for health savings accounts or high deductible plans, which generally provide coverage only for catastrophic medical events. For these plans, people should consider whether they can actually afford the medical costs that would not be covered under a high deductible plan.

The current economy has led more consumers than ever to shop around for affordable health insurance options, but they still need to carefully explore all their options.

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