Generally speaking, limited medical coverage is a lower-cost alternative designed to provide assistance with day-to-day medical expenses such as office visits and routine care. Limited medical plans have an annual cap on the amount the insurer will pay for medical expenses, and some benefits have a per visit limit. Limited medical benefit plans can also feature deductibles and co-payments under lower annual maximums than major medical plans.

Major medical plans, on the other hand, have significantly larger annual maximums and are designed to help with day-to-day needs as well as catastrophic injuries and illnesses. Most major medical plans feature deductibles, out-of-pocket maximums and co-pays for certain outpatient procedures.

Companies with large numbers of hourly, part-time, or seasonal employees may find limited medical plans are a good fit for these workers. Limited medical coverage is not intended to be a substitute for major medical coverage, but rather to provide limited coverage to individuals who may otherwise not be insured at all. Many employers are turning to limited medical plans to provide coverage to larger amounts of employees.

Examples of businesses that may be a good fit for limited medical coverage include:

• Convenience stores
• Restaurants
• Retail
• Temporary staffing services