Catastrophic health insurance plans offer you low monthly premiums in exchange for high annual deductibles. Is this kind of health care coverage right for you? Read on to find out.
How do They Work?
Catastrophic health insurance plans are also known as High Deductible Health Plans. Basically, you pay almost all your medical care bills until you reach the annual deductible amount.
Once you reach this amount, traditional health insurance coverage begins and all you typically have to pay is your co-insurance. Note that many of these plans also have high lifetime payment caps, usually between $1 million and $5 million. Once you reach this cap, your policy is cancelled.
Should You Get a High Deductible Health Plan?
The low monthly premiums of a high deductible health plan are very attractive. However, you need to be sure that you can afford to pay your medical expenses until you reach your deductible.
These plans typically offer the most benefit to people who are ...
* Young and healthy, with few medical expenses
* People who can afford to pay regular medical expenses but want protection from serious illnesses or injuries
One way to offset the costs of a high deductible health plan is to combine it with a Health Savings Plan. Such a plan is like an IRA for medical expenses - you can set aside money tax-free and then withdraw it to pay towards your deductible expenses.
Getting Quotes for Catastrophic Health Coverage
You can buy these policies as individual plans or as a group plan. To get quotes, go to an insurance comparison website and enter your personal information on the secure form. You'll soon receive quotes from multiple A-rated companies.
If you have any questions about your insurance choices, the best insurance comparison websites have insurance experts on hand to talk with you and help you make the best choices (see link below).