A mini price, a mini policy

By switching health plans, her monthly cost will drop from $300 to $123. For that, she will get five doctor visits a year, some lab tests -- and strict limits on hospital care.

"I'm pretty healthy and in many ways this plan is better for me at half the price," the San Diego woman said.

Like Terwilliger, more Americans are turning to low-cost health plans, some as cheap as $50 a month, that pay for routine doctor visits and perhaps some prescription drugs but that don't cover catastrophic illnesses or most hospital care.

For some healthy consumers, they may be a good idea. But as the plans become more popular, consumer advocates warn that they may provide a false sense of security. Without that ultimate protection, they say, the plans might not always be worth the cost.

The bare-bones policies, known as "limited-benefit" or "mini-medical" plans, have been popular for several years with some small employers. Now more companies are embracing the leaner policies as a way to cajole uninsured workers to get coverage or to help struggling employees keep it.

California-based Jack in the Box Inc. and Marie Callender's recently started offering limited-benefit health plans to their employees, joining companies such as Exxon Mobil Corp., Home Depot Inc. and Denny's Corp. Later this year, more than 20 national companies, including Intel Corp., IBM and Sears, Roebuck & Co., are expected to include limited health insurance in their coverage options as well.

Critics of mini-medical insurance point out that most employers don't contribute to the plans, as opposed to traditional plans in which employers often pay 80% to 100% of employee premiums.

And, they say, these policies won't much help workers who most need it -- those who end up in the hospital facing huge unpaid medical bills. Research shows that up to half of all bankruptcies today are related to medical costs.

Another concern, say benefit experts, is that if employees try to reapply for comprehensive coverage down the road, limited plans may not be considered "credible coverage," and applicants could be denied for preexisting conditions just as if they had no insurance at all.