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Catastrophic Health Insurance

Catastrophic health insurance is one of the types of health insurance that is becoming more popular for people who want to save money on their medical coverage.  Like any insurance plan, there are benefits and there are aspects that are not so beneficial to the consumer.  An individual considering catastrophic health insurance should do his research and be armed with information so that they can know exactly whether to choose catastrophic health insurance or not. 

 

Catastrophic Health Insurance:  What is it?

Catastrophic health insurance is characterized by low premiums and high deductibles.  The owner of a catastrophic health insurance policy must may most of a medical bill until they pay the equivalent or more of a deductible.  The coverage then will pay the rest of the expense that is needed.  The policy used to be that catastrophic health insurance would not cover all medical expenses, such as regular appointments or prescriptions.  That has changed in recent years, and now catastrophic health insurance will cover routine as well as sudden health expenses.  Higher premiums will bring more coverage for the owner of a policy.  An option for those who have catastrophic health insurance is a health savings account, assuming there is eligibility for it, which can be used for deductible payments and can be very helpful. 

There are also limits as to how much a policy owner can benefit from a catastrophic life insurance policy over time.  Most maximum benefits are between 1 million and 5 million dollars.  If a policy owner reaches or passes this amount, the company does not pay any longer and cancels the policy, leaving the consumer without any insurance at all.  This is one reason that it may be preferable to purchase a normal health insurance policy if one goes to the doctor often, must have numerous required surgeries, or is required to have expensive prescriptions. 

 

Catastrophic Health Insurance:  What Kind?

Catastrophic health insurance comes in four different varieties:  comprehensive and supplement; and group and individual.  Comprehensive is more like regular insurance, with the exception of a still-high deductible and a low premium.  Comprehensive coverage will cover more than supplemental coverage, because supplemental coverage costs less for the consumer.  Supplemental coverage can also be useful for adding to other types of insurance to increase any coverage.

Catastrophic health insurance can either be for an individual or a group.  Like other types of insurance, an individual must qualify for coverage, and they may be restricted if they have some kinds of pre-existing conditions.  For group insurance, an individual cannot be restricted, even if they have a pre-existing condition, but the condition must be covered before they are able to be a part of the group insurance.  While it may be possible for a person to pay for a pre-existing condition himself, he may in some cases not be able to pay, which could postpone group insurance for longer than desired.

Coverage depends on what plan the consumer wishes to purchase.  Not everything is covered by any one medical insurance plan, so a person buying a policy may choose to have normal health insurance with supplemental coverage added in order to get all the coverage they desire. 

 

Catastrophic Health Insurance:  Who is best suited?

Catastrophic health insurance is often chosen by people who are self-employed or cannot be insured by their employer.  With more individuals in self-employment or losing work insurance, catastrophic health insurance is a good option, provided the consumer is in good health and remains in good health.  It is best suited for those who are very healthy or relatively healthy and rarely see a doctor or have a stay in a hospital.  Consumers must determine what they would be willing to pay for their coverage.  If the consumer is in good health and has every indication of remaining so, then he may wish to opt for the lower premiums offered by catastrophic health insurance. 

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