Limited Network Health Plans

My wife had been seeing the same doctor for years, Dr. Fred. Even when we moved across town, she continued to make the drive to his clinic because she felt comfortable with Dr. Fred and he knew her health history. So when her legal office changed to a new PPO plan, she was dismayed to find that Dr. Fred was no longer in the network even though she had the same health insurance carrier.

The folks running my wife’s office were advised by their broker that they could get a much lower deductible for their employees for about the same premium. And it was true, but the discount came at the cost of a smaller network. Since the insurance company can limit the doctors available, and thereby reduce their potential cost, they can offer a lower priced “limited network” plan.

One Size Fits All

Since the legal office picks the same health plan for all of their employees, she did not have the option to select a more inclusive health plan. Like a free t-shirt, the one-size-fits-all approach to buying health insurance rarely fits anybody. Limited network health plans might be a value for some if their doctor is covered or if they are flexible in finding a new doctor, and that demonstrates the wide range of different needs in health insurance.

Put it in the Bank

We switched my wife over my policy, where Dr. Fred is in their network. We also arranged for her work to change her medical benefits to an HSA contribution. So in the end, we were actually better off by putting much of her previous insurance premium dollars directly in the bank.