Bare-bones health plans: are they worth the money?

H ealth insurance premiums rise with the generosity of the benefit package. Both public and private sector policymakers are interested in making less-costly health insurance available by offering a bare-bones benefit package.This analysis develops several alternative insurance policies that would cost 30 percent less than a current basic benefit plan and examines the implications of these policies for purchasers. Although strippeddown policies are meant to make insurance more affordable for low-income consumers, they do so only with enormous risks.