My health coverage plan adamantly states that it is not "insurance", it is a "limited health benefits" plan. Is there a legal reason why they choose these words instead of insurance, or is there an actual difference? More importantly, if I have "limited health benefits" instead of "insurance", am i getting royally screwed?
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Yes, you're getting royally screwed. To be insurance the company must be on the hook to pay out money, sometimes more than it receives in premium. It is a federal regulation that if the plan is not insurance it cannot use the term "insurance". Your plan just takes in money and doesn't offer you anything more than a list of doctors which may or may not really accept the plan and, if they do, may or may not give you a discount. Good luck trying to get off the plan. A good percentage of complaints against these plans are people trying to disenroll and cancel the credit card or bank withdrawl payment. Also, the application fee is not refundable.
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