Are Limited-Day Medical Plans Too Good to be True?

As a business owner, you are constantly being bombarded with emails promising amazing deals, cost savings, and more ways to increase revenue without increasing expenses—but are these deals too good to be true?


With over two decades of benefits consulting experience, we’ve seen it all. Each year, new products hit the market looking to gain favor with business owners by promising big premium savings. Of course, these messages will garner some attention from any business owner—after all health insurance premiums usually land in the top three expenses organizations have.

However, remember the adage:


If it looks too good to be true, then it probably is.


Recently, we’ve had numerous clients ask us about emails they have received, mentioning these affordable premiums. The emails promote the great benefits and strong network that this “insurance” utilizes, but upon closer inspection, these plans start to show their flaws. These plans are called “Limited-Day Medical Plans.” They look and feel like true medical insurance until the plan is utilized and the limits start to show up, exposing the true costs of the plans.


Limited-Day Plans do exist for a reason, and we market them to our clients and prospects when appropriate, but there is a fiduciary responsibility required when presenting these plans to an employer group that cannot be ignored. Employers need to be provided with complete transparency and a true understanding of how these plans work. Otherwise, the consequences could be significant and costly.


Understanding our clients like we do is key. Ascela starts with intensive fact finding to learn your needs and desires as an employer group. Based on these discussions, we present plans that best support your business strategy.


While Limited-Day Plans can sometimes fit nicely, for many employers they do not provide nearly as much coverage as needed. Although your premium costs may be reduced, you might leave your employees exposed to very large claims.


Trust your instincts and be wary of these too good to be true promises. Ascela can help you review all of your options and ensure you get the benefits coverage that works best for you and your employees.


Contact our team to learn more.