Recently, in order to control risk, long-term health insurance products are required to set a limited coverage or premium adjustment mechanism. Taiwanese insurance companies adopt the traditional actuarial method-expectation principle-to evaluate the premiums of health insurance policies with limited coverage. However, the pricing method results in a seriously overpriced problem for the whole life health insurance policies with limited coverage. So far there is no any literature to discuss this mispricing topic. Therefore, the main contribution of this paper is to explain the reasons why the traditional actuarial method contributes to excess premiums and to provide a pricing model for long-term health insurance policies with limited coverage. Using internal data provided by Taiwanese insurance companies, we demonstrate that (1) the relationship between excess premiums and the level of limited coverage exhibits a humped curve; (2) constructing the adjusted coefficient approach, we provide an effective and efficient method to transform the premiums of the policies with unlimited coverage into the fair premiums of the policies with limited coverage.