Mini-medical plans (also known as limited benefit plans) have emerged in the past several years as an alternative for employers struggling to afford major medical plans, or as a form of coverage for workers without access to major medical plans. These plans are economical for employers and offer some coverage. However, they fall short in terms of covering large expenses or catastrophic medical events. The value of these plans has been strongly debated, particularly in light of health care reform requirements.
What are Limited Benefit Plans?
Mini-medical coverage is essentially a limited health plan designed to be provided in place of major medical coverage. Though these plans provide coverage, it is usually limited to routine medical visits and prescription drugs. In the event that the employee needs coverage for a major medical event, this would most likely not be covered. However, a majority of employees do not use anywhere near the full amount of their health benefits in a year, so a mini-medical plan may be ideal for certain individuals (barring an unexpected medical incident).