Fixed Benefit Plans
Fixed Benefit health insurance plans provide a set amount of money referred to as a payout to cover predetermined illnesses, conditions, or incidents. The policyholder determines both the payout amount and what it covers.
So, for instance, one could enroll in a Fixed Benefit plan and establish a $50,000 payout for heart surgery to cover their chronic cardiovascular issues. There are many benefits to these plans and many things you should keep in mind before enrolling in one—here is all you need to know about Fixed Benefit plans.
The Pros of Fixed Benefit Plans
Sometimes, the easiest way to decide if a health insurance plan is right for you is to compare the pros and cons. In the case of a Fixed Benefit plan, one of the pros is its low price tag.
Because you determine your own payout, you can set your own monthly payments. Compared to other plans, they are overall very inexpensive due to their short-term nature (i.e., the plan ends once the payout is issued).
Fixed Benefit plans also do not have sub-limits. Sub-limits are caps that the insurer puts for the policyholder on expenses, often against a specified medical procedure. Once the payout is received, you can put as much of it as you want towards the specified expense and use whatever remains for anything of your choice.
You can also use these plans in addition to another health insurance plan. Say you have a Medicare plan—if you anticipate needing a service not covered under your Medicare plan, you can invest in a Fixed Benefit plan to cover it.
The Cons of Fixed Benefit Plans
One of the most notable cons of Fixed Benefit plans is that they do not qualify as Affordable Care Act (ACA) compliant. So, if you do not have an ACA-compliant plan, you will have to pay the federal penalty. Rather than the consistency of ACA-compliant plans that cover a variety of services, this plan is more circumstance-based, covering only the service of the insured’s choice.
Also, because these plans do not function like a typical health insurance plan, it will not cover any other services than the specified one. These plans, then, do not work very well on their own but can be very beneficial when used as a supplement to another plan.
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The Right Insurance Plan is a Phone Call Away
Choosing the right health insurance is difficult. And, especially with a Fixed Benefit plan, you will likely have multiple plans at once. How, then, do you sort out all of your coverage?
You need a reliable company that can guide you through the process. With Veritas Insurance Group, you will be well taken care of. When you’re ready to get started, give us a call at 563-940-2284.
