Medical Coverage for Hourly Workers: Major Medical vs. Limited Medical

Choosing Between Major Medical and Limited Medical

Employees that hold non-management positions are usually paid hourly wages. This means that they will earn much lower than their salaried counterparts. Hourly workers pay their own insurance policies which may have lower quality that limits options for medical care.

You may be wondering which type of medical coverage to get for your hourly workers. Should you opt for major medical or limited medical? Before you make a decision, it is imperative that you thoroughly understand the difference between the two.

Major medical gives catastrophic and comprehensive medical coverage. Since the price of healthcare services is continuously rising, most of the big insurance companies have also adjusted the out-of-pocket expenses for policy holders. This makes the daily cost of healthcare more expensive.

Limited medical gives fringe benefits for common illnesses and accidents at affordable prices. The medical coverage that comes with this type of insurance is specific and has a capped limit. It is quite useful in different situations such as:

  • If an hourly worker is not qualified to apply for a major medical insurance, even in a special enrollment period.  
  • If an hourly worker wants to increase his fringe benefits for common healthcare needs such as visits to the doctor, x-ray, laboratory tests, and wellness visits at an affordable price.
  • If an hourly worker simply cannot afford a major medical insurance.

Which type of medical coverage suits hourly workers better?

Limited medical plans are steadily growing in popularity. Many employers (and hourly workers) find major medical insurance to be too expensive, which is why most of them opt to avail the limited medical insurance. However, you must still carefully evaluate the limited medical insurance you are getting in terms of pre-existing condition limitations. Think of how the plan works during its effectivity, as well as the deductibles, indemnity benefits, and co-insurance features.

Apply for medical coverage suitable for hourly workers with ARCHER JORDAN

There are several differences in the limited medical plans available for hourly workers, the biggest of which is the pre-existing condition limitation. If you are looking for customized health insurance plans for your employees, consult a third-party fringe benefits specialist like ARCHER JORDAN. Avoid wasting your money on a plan that does not maximize the money that you shell out. Call a fringe benefit expert today.

5-Easy Steps to Fringe Benefit Compliance

In this FREE guide we’ll show you how to create a fringe benefit plan that secures your business



AD & D
Affordable Care Act
AK Prevailing Wage
AL Prevailing Wage
AR Prevailing Wage
AZ Prevailing Wage
CA Prevailing Wag
CA Prevailing Wage
CA Prevailing Wage 401k
Call Centers
CO Prevailing Wage
Compliance Tips
Critical Illness
CT Prevailing Wage
Davis Bacon Act
DE Prevailing Wage
Department of Labor
Disability Insurance
Employee Benefits
Employee Training
Employer Tips
Farm Labor Plan
Fixed Indemnity
FL Prevailing Wage
Fringe Benefits
GA Prevailing Wage
Government Contracting
Government Contractors
Health and Welfare Wrap
Healthcare Benefits
HI Prevailing Wage
Hospitality Benefits
Hourly Seasonal Workers
Hourly Workforce
Human Resources
ID Prevailing Wage
IL Prevailing Wage
IN Prevailing Wage
IO Prevailing Wage
KS Prevailing Wage
KY Prevailing Wage
LA Prevailing Wage
Limited Medical
MA Prevailing Wage
Major Medical Insurance
McNamara-O’Hara Act
MD Prevailing Wage
ME Prevailing Wage
MI Prevailing Wage
MN Prevailing Wage
MO Prevailing Wage
MS Prevailing Wage
MT Prevailing Wage
NC Prevailing Wage
ND Prevailing Wage
NE Prevailing Wage
NH Prevailing Wage
NJ Prevailing Wage
NM Prevailing Wage
NSRMCA Members
NV Prevailing Wage
NY prevailing wage
OH Prevailing Wage
OK Prevailing Wage
OR Prevailing Wage
PA Prevailing Wage
Part Time Employees
Podcast Guest Appearances
Prevailing Wage
Prevailing Wage Workers
Restaurant Group Benefits
Retirement Plans
RI Prevailing Wage
SC Prevailing Wage
SCA Audits
SCA Compliance
SD Prevailing Wage
Seasonal Workers
Service Contract Act
Small Business
State Prevailing Wage
SUB Plan
Supplemental Benefits
Supplemental Unemployment
Third Party Administrator
TN Prevailing Wage
Trust Services
TX prevailing wage
UT Prevailing Wage
VA Prevailing Wage
Violations – SCA
Voluntary Benefits
WA Prevailing Wage
WI Prevailing Wage
Workplace Health
Workplace Safety
WV Prevailing Wage
WY Prevailing Wage