Amid rising health insurance costs and tough economy, or if you are currently unemployed or your job does not provide health insurance coverage, perhaps you need to consider catastrophic health insurance.
What is it ?
Catastrophic health insurance is meant as your financial safety in case you have a health catastrophe. These plans don’t pay your everyday health problems like flu or sprained ankles. It covers you in a worst-case scenario like if you get into emergency surgery, and your medical costs total thousands of dollars.
Typically, catastrophic health care insurance policies provide coverage for inpatient and outpatient hospital expenses, emergency room charges, anesthesia, X-rays and lab tests, surgical expenses and professional fees of doctors, surgeons and other medical providers. Occasionally, preventive benefits will be provided. However, most catastrophic plans do not pay for office visit and prescriptions. Occasionally, limited appointment benefits could possibly be covered, but a deductible will probably apply.
A “High Deductible Health Plan” (HDHP) is yet another way of catastrophic coverage. An HDHP can be an inexpensive health care insurance plan that typically does not purchase the 1st several thousand dollars of medical expenses. However, after those expenses have been paid (your deductible), a policy pays 80%-100% of remaining expenses. HDHP plans are needed when you are planning to open a Health Savings Account (HSA). However, you happen to be also able to take out an HDHP without the need for the HSA feature.
Mostly, these medical insurance coverage is purchased by healthier people under 30’s and for people who nearing retirement age. Catastrophic health care insurance plans cover your medical expenses once you have paid a deductible that’s typically between $1,200 and $25,000. That’s the primary reason they can save lots of money when compared with a traditional health plan using a lower medical deductible, office visit, and prescription coverage.
You will find advantages and disadvantages to this type of health plan. You must weigh the options properly which means you really know if you’re designed to purchase this type of health plan. Look at the initial cost of the blueprint, the extent of the coverage and the lifetime maximum benefit to be had, if you possibly could afford to buy doctor’s visits around the off chance that you receive a sickness, and exactly how much the deductible is and when you can afford it.