Spring 2007 / No. 71
What’s in a name?
Voluntary medical products are a fast-growing segment of the
market. Typically, the category includes hospital indemnity,
mini-med, limited benefit medical, and (sometimes) supplemental “gap” plans.
We recently interviewed several “thought-leaders” in
the market to get their opinions on where the market is and where
it is going. One thing we learned early on is that the players
in this marketplace can’t agree on the terminology!
Some think that mini-med and limited benefit plans are the same
product while others believe they are different. But the once “clean” line
of defining a mini-med as an expense-based product and limited
benefit plans as indemnity products is no longer there. Carriers
who say they offer mini-med plans may offer one that is indemnity-based
while limited benefit plans are just as likely to be expense-based
as indemnity-based. The only thing that people seem to agree
on is that the gap plan is usually sold as an employer-paid benefit
and that the whole marketplace is growing and evolving! And,
regardless of your definition, it seems that the differences
are getting fewer. Just consider the following new designs being
considered:
- Incorporating PPO networks into indemnity-based plans
- Adding co-pays to an indemnity plan
- Paying indemnity benefits on an expense-incurred basis (up
to the indemnity amount)
The study also found that there are changes occurring in who
is selling these products as well as to whom they are being sold.
So, whatever you call them, look for more focus on voluntary
medical products.
The Trends in Voluntary Medical Products spotlight report will
be available for shipping in April. Call us for details. |
