Limited-Benefit Plans

Most states make it illegal not to offer some basic services as part of any health insurance plan. Currently, there are only 12 states that do not enforce coverage minimums.  To defray rising uninsured populations, however, many states allow providers to offer limited-benefit, or mini-medical, plans.

Pros
Limited-benefit plans are cheap relative to comprehensive coverage.  If you don’t get sick, they will probably save you a bunch of money.  In addition, some caregivers will negotiate discounted prices for those whose do not carry comprehensive insurance.

Cons
As the name implies, the benefits provided by these plans are stripped-down.  The biggest drawback, however, is the lack of a safety net.  Limited-benefit plans carry atypically low expense maximums, which can be as little as $10,00 per year.  If you get injured or truly sick, you would get pinned for every cent after that.

In Conclusion
Limited-benefit plans are designed to be better than nothing.  They are not a true substitute for comprehensive care, but are extremely affordable (around $200/month for a family of four).  If you are relatively healthy and willing to take a gamble– and if your state allows — a plan like this might make sense.