This type of insurance is also known as Minimum Essential Coverage (MEC).  A MEC plan offers limited coverage and does not, generally, cover hospitalization.  MEC plans were a direct result of the provisions of the Affordable Care Act being enforced on employers and also on individuals (individual mandates for health care are no longer in place).  Typically, these plans are PPO (also known as Preferred Provider Organization) rather than HMO (Health Maintenance Organization).  MEC plans may be offered with a specific hospitalization benefit that is limited to the basics and may only pay for one emergency room visit per year or a limitation on the number of days covered if the insured is hospitalized.

With a PPO you can go to any health care professional you want, normally without a referral – inside or outside of your network.  You might pay more going outside of your network and some services might not be covered.

With an HMO plan you pick one primary care doctor that is contracted with the provider.  This doctor will coordinate all of your health care services.  Your doctor keeps track of all of your medical records and provides routine care.   In order to see a specialist you will need a referral from your primary care  doctor except in an emergency.  Without a referral your HMO insurance won’t cover the cost of your care.