| These days, everyone is looking for ways to save | | | | benefits such as inpatient care, hospital room and |
| money. Some have found that buying cheap health | | | | board and other critical services. One of the bigger |
| insurance is one way to go. And while this has its | | | | selling points for Limited Benefit plans, however, is that |
| upside, you should be careful, because you may end | | | | they often cover at least part of the insured's |
| up with a health crisis. | | | | everyday medical expenses. Still, even with respect to |
| For many folks in Dallas, Houston or throughout Texas | | | | every day care, the policies have restrictions such as |
| with no health insurance, a policy known as "Limited | | | | waiting periods for "wellness checks" and exclusions |
| Benefit" sounds like an appealing choice. Premiums are | | | | for the treatment of pre-existing conditions. Limited |
| as low as $10 a week. But there's a big catch: these | | | | Benefit plans typically also have deductibles that |
| policies pay as little as $1,000 a year or $10,000 for a | | | | policyholders must pay each year before benefits kick |
| lifetime - so little that some health insurance experts | | | | in. |
| question whether they really amounts to health | | | | Some insurance companies have tried offering |
| insurance at all. | | | | low-cost policies that cover "catastrophic" health costs. |
| Even insurance industry executives and agents are | | | | But industry officials say low-income employees |
| highly skeptical of such plans. At one | | | | haven't shown much interest because such plans |
| insurance-company meeting last year, a roomful of | | | | require high deductibles - perhaps a couple of |
| agents burst into laughter when an executive | | | | thousand dollars - before coverage kicks in. |
| described a Limited Benefit plan. But plan defenders | | | | Low-wage workers are more interested in something |
| say the simple act of giving low-income workers an | | | | that covers basic expenses. |
| insurance card can encourage them to seek routine | | | | While many employers who sponsor Limited Benefit |
| preventive care. They contend that some measure of | | | | health plans for their employees reluctantly concede |
| health coverage, however small, is better than none. | | | | that the plans offer little to no help with a serious illness, |
| Currently, Limited Benefit policies are among the | | | | the employers and their insurance agents say that |
| fastest-growing health insurance offerings for | | | | they make sure workers understand what this |
| temporary and hourly workers. Sold by half a dozen | | | | particular insurance will and will not do. |
| insurance companies, they cover an estimated | | | | Enrollment in Limited Benefit health plans has grown |
| 750,000 employees and family members. Wal-Mart | | | | about 20% in each of the past few years. Employers |
| Stores Inc., McDonald's Corp. and Lowe's Cos. are | | | | make them available mostly to hourly workers, either |
| among major companies making them available to | | | | full- or part-time, and collect the premiums through |
| their employees. For the nearly 47 million uninsured | | | | payroll deduction. Many companies in the service |
| people in the United States today, having Limited | | | | sector typically find that 10% to 30% of eligible |
| Benefit health insurance would be better than having | | | | workers elect to purchase the Limited Benefit |
| no coverage at all. | | | | coverage. |
| Limited Benefit plans place severe financial caps on | | | | |