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SD Official Warns About Limited Health Insurance

April 5, 2012, 6:07 AM


State Insurance Director Merle Scheiber says South Dakotans should be wary of non-traditional health insurance policies sometimes called limited medical benefit insurance or mini-med plans.

Sheiber says such policies offer a low level of coverage, and there is no limit on how much the policyholder might have to pay for medical expenses.

Sheiber says such plans are often sold as a cheap alternative to traditional health insurance, and policyholders may have to pay for more expenses out of their own pockets. He says someone with such a policy might have to borrow money or face bankruptcy to deal with a costly illness or injury.

He says to people should protect themselves by making sure an agent is licensed in South Dakota and has a national producer number.

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