Can't afford a Cadillac? Buy a Chevy (health plan)

I've been marketing health insurance since 1980. And since that time, my motta has been:
"If you can't afford a Cadillac, buy a Chevy."

Now, at last, the Governor of a state (Tennessee) is on board with me.

While other governors and know-it-all legislators are intent on "first dollar, full coverage" health care for everyone -- those are known as Cadillac plans -- Gov. Bredesen explains the Tennessee approach:

We need a national health-insurance solution, but isn't it sensible in the meantime to make sure everyone has a basic health plan before we give a few more people a perfect but expensive one? Shouldn't we make sure everyone at least has a Chevy rather than providing a Cadillac to a few and letting the rest walk? We're trying that in Tennessee with CoverTN.

Is limited health care coverage better than none? Ask the lady referenced in the article whether she would have preferred not to have to put $9,000 on her credit cards to cover unexpected medical bills from a tick bite.

There are two ways to buy a health plan at a Chevy price:

1. Buy a policy that has excellent coverage for very large expenses, but take a high deductible.
2. Buy a policy with a low deductible and perhaps a co-pay benefit that has very limited coverage for large expenses.

In other words, you have to make a decision whether you want to be more responsible for unanticipated medical bills on the front side or on the back side.

Front side expenses are more likely to be incurred -- everything from a minor ER visit for stitches to a coronary attack always start with the first few dollars.

Large back side expenses are less likely to be incurred -- but can often result in bankruptcy if not properly insured.

Today, I recommend basic coverage as an option to no coverage for folks because the "band aid" approach makes more sense than no coverage at all.