Don’t Put Yourself or Family at Financial Risk

​To any consumers out there that are looking to purchase health insurance during this years “ACA Open Enrollment” be very careful about purchasing a Fixed Indemnity Plan vs. Major Medical coverage. Or being told that these plans are as good if not better then ACA Health Plans. Consumers who accidentally purchase this type of coverage may find themselves shocked by large hospital bills if they have a serious medical event.

Fixed Indemnity plans in most cases will not cover pre-existing conditions, preventative care or essential health benefits as defined by the Affordable Care Act. These plans limit your annual or lifetime health benefits leaving you responsible for the remaining cost. They are insufficient to cover bills in case of a major medical event. Fixed indemnity plans will often masquerade as a substitute for health insurance even though they offer serious limitations if you were to suffer a serious medical event. 

These types of plans can pose serious financial risks for both consumers and employers wanting to offer some coverage to their employees. Traditional health insurance charges its enrollees a monthly premium, in exchange for paying for some or all of the health care services an individual receives. Fixed indemnity (also called hospital indemnity) coverage is designed differently, with payments made on a “per time period” basis. 

Rather than paying health care providers for providing specific services, fixed indemnity coverage provides a payment for each day (or month, or other time period) an individual is hospitalized or experiencing illness. 
Also, these plans may discriminate based on pre-existing conditions, decline to cover the ACA’s essential health benefits, and cap enrollees’ annual out-of-pocket spending. 
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If your employer does not offer health insurance or you are self-employed and needing health insurance we highly recommend that you purchase ACA Health Insurance. During Open enrollment which runs from November 1st until January 15th you can enroll in any plan no matter what pre-existing conditions you may have. Over 70% of our clients pay $0 per month for the health insurance. Remember, ACA health plans are held to a much higher standard than fixed indemnity plans. These plans can put you at serious financial risk if you were to suffer a serious illness or accident.