Understanding Mini-Medical Plans

Many industries or small sized employer groups utilize a mini-medical plan, such as restaurants, hotels, maid services, catering services, etc. These limited benefit plans pay for covered services at an affordable premium for both the employees and the employers. But keep in mind, they cost less, so they cover less, and most likely will not protect you from a bankruptcy situation for any catastrophic medical care.

Mini-medical plans provide a basic level of coverage for people who do not have access to a major medical plan or traditional coverage.

Some large employers have a class of employees who are ineligible for their companies traditional health insurance plan for a variety of reasons. For instance, they may be only seasonal or part-time employees. Being able to offer them a mini-medical plan helps to boast employee moral and increases retention.

Mini-medical plans are not meant to replace major medical plans, but to fill a specific niche and provide some medical coverage for those who may not qualify otherwise.


Long-term care insurance, should you have it?

Becoming chronically ill due to a cognitive impairment, or if you’re unable to perform at least two activities of daily living without substantial assistance, qualifies a person for long-term care. Having insurance that covers long-term care would help pay for the care you need. Depending on the level of care that is required, that care may be provided in a nursing home, an alternate care facility, or even your own home.

In addition to helping pay the costs of long-term care, long-term care insurance may help to provide these additional benefits:

  • Protect your savings and other assets
  • Preserve your independence
  • Avoid government dependence

If you’re unable to pay for long-term care when you or even a loved one needs it, odds are you will need to spend down, or liquidate, your assets to become eligible for Medicaid to pay the costs of the care required. That is a sad reality if you do not have the coverage when you need it.

Another option is purchasing a long-term care rider on your life insurance. This option provides care before the client requires long-term health due to age but instead provides coverage become impaired due to an accident or illness.


Five Factors that can Affect Your Premium

Did you know there are five factors that can affect how much your health plan’s monthly premium under the health care law? However, individual states can limit how much these factors come into play.

These five factors are:


  • Age: Premiums can be up to 3 times higher for older people than for younger people.
  • Location: Where you live has a big effect on your premiums. Differences in competition, state and local rules, and cost of living are the reasons why.
  • Tobacco use: Insurers can charge tobacco users up to 50% more than those who don’t use tobacco.
  • Individual vs. family enrollment: Insurers can charge more for a plan that also covers a spouse and/or dependents.
  • Plan category: Bronze, Silver, Gold, Platinum, and Catastrophic. The categories are based on how you and the plan share costs. Bronze plans usually have lower monthly premiums and higher out-of-pocket costs when you get care. Platinum plans usually have the highest premiums and lowest out-of-pocket costs.


In addition, insurance companies may offer more benefits, which could also affect costs. Furthermore, insurance companies can not charge women and men different prices for the same plan, nor can they take your current medical history or health into account when, otherwise known as pre-existing conditions.