Health Insurance Articles

What Is A Scheduled Health Insurance Plan

2010-01-26

With the cost of merely living rising ever higher, many families find themselves seeking new areas in which to save. Common ways can include a family transitioning to be a one-car household, or limiting the amount spent on eating at restaurants or take-out food stores. One less common option for minimizing monthly costs is the adoption of a scheduled health insurance plan.

Health insurance coverage under a scheduled plan is different than traditional or "comprehensive" coverage in that it only provides coverage for basic services such as doctors visits, routine tests and limited drug prescriptions. This coverage is paid out in accordance with the insurance companies "schedule" or "list" of benefits, which will detail what procedures they will pay for, as well as how much of the cost they will cover. While the plan may cover a small amount of hospital or surgical costs, it is not intended to be relied upon for such events. The benefit to a scheduled plan is that the monthly premiums paid are much smaller than in a comprehensive plan, and the money paid out by the insurance company will go directly to the service provider, be it a doctor's office or diagnostic company. The flip side is that the maximum annual coverage provided under many of these health insurance agreements will often total only between $1000 and $2500, which can be used up quite quickly if an illness or serious injury occurs.

Scheduled health insurance plans have also been termed "mini-med" or "association" plans, as they must belong to an association which does not have selling insurance as its only function. The purpose of these plans has never been to replace traditional coverage, but to augment it, making things like going to the doctor or receiving prescription drugs easier. If used in combination with a traditional yet more minimalist health coverage, the client stands to save a substantial amount while still feeling secure that they will be protected in the case of an emergency.

With the plethora of options currently available in the health market, from HMOs to employer-based healthcare to self-directed insurance plans, knowing what to choose and how much coverage to buy can be difficult. A well-managed scheduled plan can take some of that burden off the shoulders of a client, as long as they are diligent and also make sure that their insurer has a good track record along with a robust list of service providers. That way, a plan holder can rest assured that their basic health care needs will be met and can spend more time and effort searching for the right amount and depth of conventional coverage.