Bare bones plans

A bare bones plan is a health insurance policy that covers only essential benefits required by law, such as emergency services and hospitalization. Bare bones plans typically have lower monthly premiums than comprehensive plans; for example, 2023 ACA Catastrophic plans averaged $313 per month versus $456 for Silver-tier coverage (KFF).

Insurers offering bare bones plans often exclude non-essential services like dental, vision, or prescription drugs; examples include short-term medical policies from UnitedHealthcare and National General, according to a report from the Insurance Information Database. The Affordable Care Act allows individuals under 30 or with hardship exemptions to purchase bare bones Catastrophic plans.

Deductibles in bare bones plans are usually high–ACA Catastrophic deductibles reached $9,100 in 2024 (Healthcare.Gov). Bare bones policies frequently limit provider networks to control costs; Oscar Health’s “Simple Secure” plan restricts members to specific hospitals and doctors.

Out-of-pocket maximums on these plans can approach federal limits–for instance, the 2024 ACA cap is $9,450 for individuals (CMS). Employers sometimes offer bare bones group coverage to meet minimum legal requirements but avoid penalties under the Employer Mandate; Walmart’s lowest-cost employee option historically met this threshold without covering all standard services.

Many states prohibit insurers from selling certain types of bare bones coverage–such as limited benefit indemnity products–to comply with consumer protection laws; California banned new sales of mini-med policies after 2010.