* Low or no out-of-pocket costs: Meaning deductibles, co-pays, and coinsurance are minimal or nonexistent.
* Extensive benefits: Including a wide range of covered services and prescription drugs.
* Low premiums (often deceptively): While premiums might seem low compared to a high-deductible plan, the total cost of care is high because of very little cost-sharing.
The term "Cadillac" is used because such plans are luxurious and expensive, much like the luxury cars. The term is often used in discussions about healthcare policy and reform because these expensive plans drive up the overall cost of healthcare. Government regulations sometimes target these plans to try and control healthcare costs.
