Inexpensive (And Lousy) Health Insurance

WASHINGTON, DC (WUSA) -- Find yourself in an emergency room and you might find out you have junk insurance.

Consumer Reports finds too many people are falling victim to hazardous health plans.

But they don't discover the problem until they get sick. Gina Eaton knows. Her policy has such a high deductible that she says she opted not to get medical treatment after a miscarriage.

"I just kind of went to bed for about three or four days, and tried not to walk around or do anything. I just stood real still and hoped that it would heal itself," Gina says.

Consumer Reports' Nancy Metcalf says, "The policies are like Swiss cheese. And, the way they're written, it's really hard to spot the gaps. Even the insurance expert we hired to help us with this project had a hard time deciphering some of them."

She says the buzzword on many junk policies is 'affordable'.

"Many big-name insurance companies are offering these. They look like a good deal because the premiums are low, but they're low for a reason. They are so riddled with loopholes, limits and exclusions that they will not come close to covering your expenses if you ever fall seriously ill.

So, here's how you can avoid junk health insurance policies. Firs, never buy a policy labeled 'limited benefit' or 'not major medical insurance'.

Next, don't leave out a category or care because you 'never use it'. You may not use it now, but you could desperately need it later.

Finally, don't just rely on the salesperson's word. Always read the find print which will help you avoid low-cost coverage that comes with a high price tag.

Consumer Reports says that in addition to the incomprehensive language the so-called 'affordable' healthcare plans use, people buying them often have no idea how high medical costs can go.

For example, treating cancer can easily run upwards of six figures, far short of what these policies provide.