Several states are investigating and considering actions to regulate the practices of limited- or scheduled-benefit plans being offered by HealthMarkets and its subsidiaries, Mega Life, Mid-West National and Chesapeake Life. Regulators say they have received a higher-than-normal rate of complaints about poor coverage and deceptive sales practices from these insurers.
While some analysts say that these low-coverage policies are better than nothing for sick consumers, the question remains of whether limited-benefit coverage policies, which set tight limits on what, and how much, the insurer will pay, are offering policyholders enough financial protection to be considered “insurance” at all.
As quoted in a recent USA Today story, Georgetown University Health Policy Institute’s Mila Kofman says: “The idea behind being privately insured is that your insurance company will pick up the bills when you’re sick, not for government programs to pick up the bills after you’ve paid premiums to the insurer â€¦ By the time a consumer realizes they don’t have a major medical policy, it’s too late.”
Read the original story at USA Today’s website: Limited policies vex some buyers.