I must be honest, I never expected myself to be on the same side as the Obama administration in the midst of a limited medical (aka mini-med) health care argument, but yesterday, that is exactly where I found myself. Administration officials contended that “mini-med” coverage was better than no coverage at all during a hearing on limited medical plans put together by Senator Rockefeller. That said, that’s about where our common ground both starts and stops. I am a firm believer that limited medical insurance does work for many people – and it’s certainly helped hundreds of thousands of Americans by providing them with valued benefits and access to our healthcare system.  It is a product that was created to meet a need in our society like so many other inventions in the United States.

The Senator held the hearing to question the waivers for medical loss ratios and annual limits which have been provided to some expense incurred limited medical plans. The waivers have flown directly in the face of the original intentions of PPACA, but when faced with people losing coverage (and probably some heavy lobbying by mini-med companies affected by the legislation), the administration buckled.

If you’re reading this blog then hopefully you’ve read some of the important information we’ve been providing about the future of limited medical plans. Remember, PPACA only impacts one type of limited medical plan -- the expense incurred kind.  Fixed indemnity limited medical plans continue to operate outside of the regulatory scope of PPACA – and are helping thousands of working Americans by providing benefits and coverage they wouldn’t otherwise receive.  The plans are stable, provide a clearer picture of what is covered and not covered, and do not face the cloud of uncertainty that exists when you are enrolled in the expense incurred (also called coinsurance-based) plans which are currently in the spotlight.

Whether they are concerned about significant rate increases or filing issues, brokers would be well served to find a solid home for their limited medical business, even if they were successful getting a waiver on the first go-round.