“Mini-Med” Plans – Does Your Business Have one? «

“Mini-Med” Plans – Does Your Business Have one?



Mini-med health plans are health insurance plans with very low total payout amounts and bare bones coverage. These plans are often offered by employers with a high number of part-time employees or non-traditional employees. These employees generally cannot afford a full insurance policy and the employer cannot cover the number of employees with an affordable plan.

For example, McDonalds provides a mini-med plan to an estimated 30,000 employees in more than 10,000 locations.

Health care reform legislation passed last year and going into full effect by 2014, sought to eliminate mini-med plans. The plans are viewed by consumer groups and employee groups as the worst form of health insurance. They claim the premiums pay for little, if any, coverage and employees do not understand what coverage is provided.

However, under the law, some employers could apply for waivers allowing their plans to remain even if it did not conform to the reform act’s requirements.

Over 1,000 employers have been granted such waivers. So, many mini-med plans remain in place. This has led critics to charge the law is unworkable.

Does your business use a mini-med plan? If so, I would appreciate your comments.

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