The Time For Mini-Medical Plans Is Now

The landscape of traditional employees is changing. Many of my clients are hiring part time employees due to the economy if they can. Other's are hiring employees on a 1099 basis so they can avoid some of the expenses associated with a traditional hire. With the labor pool changing, how do health insurance benefits fit in - or do they?

Individual health insurance is almost impossible for most people to secure, let alone afford. 1099 employees would not qualify under the definition of an eligible person for group health insurance and many plans exclude part time employees. Yet, employers need this base of employees and these employees need to stay healthy in order to work.

A new type of insurance coverage has been created in the marketplace. They have been available for several years now but until recently, lacked some key coverage elements to really make them worth looking at. They are referred to as limited medical plans - or mini-medical plans. Several carriers offer them with various underwriting guidelines but they work like this: Coverage includes doctors office visits, preventive care, pharmacy benefits, lab & xray and hospitalization. However, the plan limitations are lower than normal health insurance programs. They might include 8 office visits per year, 1 physical and hospital and surgical coverage of $100,000 per year. These programs are designed to keep people well. The premiums associated with these plans are far less that traditional health insurance coverage because the carrier exposure to claim is limited. Rates can be as low as $60 per month.

This type of program allows employers to offer something that is guaranteed issued - the carrier must accept all conditions and is affordable for employees. Also, the more employees a client can show that are covered under a group health program positively impacts workers compensation costs.

Many of my clients are considering plans like this for a variety of reasons. I don't suggest these plans as a replacement to the traditional full coverage plans but they definitely enhance an employee benefit program at a low cost for that group of employees that often finds themselves without.