The Department of Labor and Regulation's Division of Insurance warns consumers about non-traditional health insurance policies such as limited medical benefit insurance or mini-med plans.
Such policies are not comprehensive major medical health insurance and offer a low level of coverage. There is no limit to how much consumers might have to pay for medical expenses.
Common phrases consumers should beware of include:
- Real health insurance
- Guarantee issue or acceptance
- No pre-existing conditions
- Premium is only good for limited "open enrollment" period
- Designed to pay for smaller, more common claims
- Affordable health insurance
To protect themselves, insureds should also ask the agent for their National Producer Number and be sure they are licensed in South Dakota.