Objective Health Insurance

Limited Benefit Plans are another method for providing low cost health insurance. Many of the younger employees who are uninsured would get coverage if they had access to affordable
policies. Remember, these are young and healthy people. They are usually just starting out their working careers. They have little or no medical expenses. Limited benefit plans limit an insured person's reimbursement for medical care either in aggregate (e.g., a $50,000 annual limit) or with a schedule of benefits. Limited benefit plans can provide significant savings, and are therefore popular with young, healthy people and could act as a source of low cost health insurance for this particular group.

A Possible Means For Providing Low Cost Health Insurance
Another method that might be used to make low cost health insurance more available are the use of medical waivers. When faced with a health insurance applicant with a minor medical condition, underwriters in many states must either choose to increase the premium rates
to reflect the possible risk or decline coverage. An exclusionary waiver, or rider, gives the applicant an additional option: to waive coverage for the condition in exchange for coverage of all other health problems. An individual rejecting an offered waiver may apply with another health insurer but this method could act to reduce premiums making low cost health insurance available to those who are willing to accept the waiver.

An Option For Those Seeking Low Cost Health Insurance
Employer and Individual Subsidies as a source of low cost health insurance. Several states have started programs that subsidize coverage for small employers who do not offer health insurance. These programs have proven to be very popular. Other states are providing subsidies directly or indirectly to uninsured individuals. Those workers who pay for health insurance out of their own pockets should be granted the same pretax treatment of premium payments afforded to employers and their employees. States should urge the federal government to correct this longstanding inequity. Moves such as these would go a long way toward making low cost health insurance available for those who need it.