"Limited Benefits"

Some Health Insurance Companies (ehem Aetna and Cigna to name some top dawgs in the field) have been selling "Health Insurance" that have "limited benefits" to those who can't afford real Health Insurance. Now, what exactly do they mean by limited benefits you ask? Well, basically, these psuedo-coverage plans will cover a few doctors visits and some pharmacy expenses, but if you ever ohhh I don't know, get in a devastating car accident or develop cancer, you're pretty much SOL. Why is that you ask? Well, that's because many of these plans cap their maximum coverage $ amount at as little as $1000 per year. What's sad is that, as Health Care costs are rising, the demand for these types of benefits is skyrocketing. The limited benefits plans have a projected annual growth rate of as much as 20% (as of mid 2006)! Insanity I say! People are actually buying these things?!

These types of benefits are specifically designed for low income individuals, and as we all know pretty darn well, there's a strong correlation between low income and low education level. What frustrates me though is that, low education level or not, couldn't ya atleast find out what their max coverage cap is before you sign up for it? It doesn't take a rocket scientist to figure out that a $1000-$10000 limit ain't gonna provide much relief on your health care bills if something truly catastrophic happens. Many of the individuals who sign up for these things and end up in the hospital are truly surprised when their bills are not covered, claiming nobody informed them about this.

It makes me wonder... who's to blame here? Is it the exploitative HI companies or is it the individual who decides to not fully inform him/herself of what he/she is getting into when he/she signs up for "limited benefits" plans?

It's not like there isn't a cheap alternative to these plans. A lot of company these days do provide cheap high out of pocket cost plans with Health Savings Accounts that are designed to cover you for the "just in case" situations. Aren't you better off being better covered for the huge expenses that may come your way in the long run but pay a little more up front? Shelling out $100 for an extra doctor's visit is wayy better than going bankrupt trying to pay off a $80,000 debt that you accumulated because of the chemo you went through for your breast cancer.