Limited benefit health plans - Mini-Med's

May 4, 2007

  1. Jeff Spainhour
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    Jeff Spainhour New Member

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    I have been approached by two different companies to sell their limited benefit health plans this week alone. Their angle is to go after the $8.00 hr worker with something versus nothing approach. One company even broke it down to so much per hour for a temporary or contract laborer.

    Who has experience with these types of plans and how good are they. What issues and companies do I need to watch out for?

    Personally, I see a fit for say a waitress or temporary worker. HELP!
     
  2. salpro22
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    salpro22 Guru

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    HSA if they are healthy. Limited benefit plan as a last resort if they do not accept the underwriting decision.
     
  3. Jeff Spainhour
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    Jeff Spainhour New Member

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    I follow your logic and agree on a individual level. However, these companies want you to in on the group level. Plus, these workers can't afford to play the HSA game (funding). Wal-mart uses this concept to offer benefits and keep their workers happy. However, it is not a major medical PPO plan.
     
  4. salpro22
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    salpro22 Guru

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    What does Walmart offer currently?

    Valid points. I assumed you were talking about small business owners regarding your reference to companies, so I apologize for the confusion.

    I would still approach it from the BEST to the WORST on a case by case basis. The employee may be making $8.00 an hour, but his or her spouse might be making $30 an hour. A consultation would be needed then to determine what is the best way to go. Better to have somebody need $5000 to cover a plan @ 100% versus having a plan w/ caps where the exposure is a lot higher.


    UA seems to have some nice, last resort policies...
     
  5. somarco
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    somarco That Medicare Expert Guy

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    $8 per hour Joe Lunchpail is incapable of grasping the benefit of a high deductible plan (which to him is $500). Give him a mini-med first that provides a doc copay & Rx benefit, then go back with the HSA as an "umbrella" to protect against the big stuff.

    You show a guy making $16k per year ($8 hour) a plan with a $2000 deductible and his eyes will glass over. All he can think of is he can never afford to come up with 2 months wages to cover his bills.

    Show him a mini-med for $40 a month and he might buy.

    If mama is the breadwinner then you need to talk to her. Wasting your time with Joe.
     
    somarco, May 4, 2007
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  6. maryjd123
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    maryjd123 Super Genius

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    What companies contacted you? -- I have a couple of people that are diabetic and I cannot get them insured anywhere -- Is it limited underwriting? If you could post them here that would be great.

    thanks!!
     
  7. newmindfashion
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    newmindfashion Guru

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    Jeff S. - "Plus, these workers can't afford to play the HSA game (funding)."

    Careful not to miss the main point of the HSA value which is the quality and simplicity of the High Deductible Health Plans themselves. The funding and tax write offs are gravy. The main thing on a 2K HSA is that the customer owes 2K on a 50K claim. What's the point of a mini-med on a 50K claim? If the employee doesn't get that then move in to self-employeds to sell major med HSAs to.

    The funding is not a game per se but a way to get a tax write off on the deductible itself in my opinion.
     
  8. James
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    James Guru

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    HSA and the lo wage worker, first thing I would check is their last years tax return. Were they over the EITC and by how much? If they were over by 1-2 grand or even up to 4 or 5 grand and their financial situation is the same today by openening up a HSA it'll bring them below the EITC level they could easily get their money or more money back at the end of the year!

    Then I would also check if by any chance (which is very possible) they have a small 401 at work, if they do and if it is only 2 grand there is your deductible! Simpler transfer into a HSA and funding is done!
     
    James, Jun 7, 2007
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  9. salpro22
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    salpro22 Guru

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    How far are you from Pigeon Forge?
     
  10. somarco
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    somarco That Medicare Expert Guy

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    About 35 miles on 321 via Townsend . . .

    Beautiful drive.

    Not sure the low wage earner grasps the concept of the HSA. Most of the folks I have talked with earning less than $35k blanch at the thought of a $3000+ deductible . . .especially with no copays.

    My co-blogger has an interesting take on mini-meds here.
     
    somarco, Jun 7, 2007
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