Typical thing happens when American families attempt to cut cost during poor economic time. Consumers start looking for low cost options for their health insurance. Without the knowledge base to understand the hear to’s and there fores of a health insurance contract, and some very desperate, shady insurance agents more and more American are falling prey to policies that come up extremely short at claim time.
Look, I’m just like any other tax paying citizen. I want the cheapest health care cost i can find. But here is the difference in me and you. For the last 16 years I have been a licensed Texas health insurance broker, I understand health contracts better than most. I also know that policies exist on the market with massive holes in coverage. Now, how can you, the average consumer, keep from getting burned at claim time? Simple, remember the old saying, if it is to good to be true it probable is and you get what you pay for.
First off, here is the problem. Limited benefit health insurance policies will limit things like the maximum amount each surgery or procedure can cost. Also, things like cancer treatment and any out patient treatment may be either severely limited or not covered at all. Also, you may find these policies come up short on out patient drugs and to some extremes may only pay a portion of your hospital stay.
Now I know most consumers would not knowingly purchase one of these policies so one of two things happened. First, the consumer logged onto a website via an Internet search, found the cheapest plan and hit “apply now”, just assuming they selected a quality product. Second, the consumer possibly received advice form a shady health insurance broker that pushed this product based on the elevated commission these policies pay agents.
Here would be my advice, look for code words like “Saver” and “Right Start”, code words for junk. Also look for things like “Hospital Plan” again, code word for a limited benefit policy. Basically I would advise a consumer to focus on a policy that stated it was a Major Medical plan, these plans traditionally are more in line with your full coverage type policies. i would also research the internal limitations on things like out patient coverage and per occurrence limitations. Just stay away from the limits, you should find something with lifetime maximums of $3 to $5 million.
Another way to protect yourself from these limited benefit policies is to find a experienced, respected agent or broker. Another thing to do is only work with someone that has taken a stand against limited benefit policies, then when you get your Texas health insurance quote you know your getting quality, both your bank account and credit score will thank you!