A digital video producer in Dallas, Texas wrote to me yesterday for advice selecting an emergency medical insurance plan.
There are two main advantages of enrolling in an emergency insurance plan rather than paying these medical costs as out-of-pocket or through a small business reimbursement plan. First the insurance can be fully tax deductible where, in contrast, the ability to deduct direct medical expenses is limited for both individuals and businesses. (I’ve written other blog posts pointing out that some uninsured reimbursement plans are not only not deductible but also pose major tax risks to small businesses). Second, the insurer processes claims through a negotiated reimbursement arrangement that lowers the amount of liability for both the insurer and the insured (in the event of expenses above the policy limits).
I responded that the most popular choice here at Freedom Benefits is a policy called “Value 24 Hour Accident Expense Coverage“. This a a simple and inexpensive universal supplemental coverage through Value Benefits association membership for emergencies and injuries from accidents that pays cost up to $10,000 directly to the policy owner. This coverage may be combined with an employer plan, government-provided plan or any other health insurance. The policy pays benefits in addition to any other coverage; there is no offset or coordination of benefits. Premiums range from a low of $30 per month for the minimum benefit for coverage for one person to about $100 per month for the maximum benefit family coverage. Read more at http://www.freedombenefits.net/affordable-health-insurance/Value-24-Hour-Accident-Insurance.html.
Other options are available for specific situations; I am happy to discuss your unique situation.