Catastrophic Health Insurance

The cheapest of all health insurances available presently, the Catastrophic Health Insurance plan also termed as Deductible Health Plans (HDHPs), were designed as low cost alternates to the health insurances giving the applicant an advantage of a low monthly premium and a higher annual insurance deductible. Allowing you to pay for all medical care expenses until you reach the annual amount, the traditional health insurance coverage then takes their place.

Also termed as Major Medical Insurance, these covers all the major medical and hospital fees but remember it does not pay for the doctor’s visit, maternity care and even the prescribed drugs. Starting from an amount of $500, you can enjoy the coverage amount of up to $5,000 or more. Also an added advantage which comes with the Catastrophic Health Insurance plans is the cap which is like a lifetime benefit of anywhere between $1 million to $3 million. After reaching the cap although the benefits and even the policy is automatically canceled.

Providing the applicants with comprehensive health insurance benefits, these insurance plans are designed or tailor-made to give full coverage against catastrophic injuries and treatments. These are more of a financial protection you get in your unfavorable time rather than medical health insurance and the premium these require to pay are also very less when compared to the other traditional health insurances. The one factor which although varies from others is the higher deductible amount which may range from anywhere around $500 to $15,000, depending on the plan the applicant has applied for.

Also eligible for tax-advantaged Health Savings Account (HSA) you are eligible to pay for out of pocket medical expenses and deductibles through these fully. To stand eligible for a catastrophe plan combined with an HSA, you must first adhere to the deductible fees stipulated by the norms of IRS for 2008, which stands like $2,200 for families and $1,100 for individuals.

Catastrophic Health Insurance is an ideal choice for;

Families or individuals having the finance to cover the deductible amount.
Are free from high medical expenses on yearly basis.
Are wishing to save on the monthly premium which is higher for all the other traditional plans.

The pros and cons of Catastrophic Health Insurance can be summed up as;

Pros:

This is the best option for individuals who are relatively healthy and do not require or use these plans very often.
The premium and monthly fees being lower than others these are the ideal option for people seeking for lower premium based plans which are differing from the “Bells and whistle” plans.
Buying one of such plans also gives the insured an advantage of using their savings account money for medical expenses to pay as pre-tax.
Looking around and choosing for catastrophic plans proffering 100% coverage after deductible, these save you from the hassles of cost-sharing completely. They thus cut significantly on the stop loss.

Cons:

As the coin has two sides, so has the Catastrophic Health Insurance a disadvantage which is, these plans are especially not for individuals who use the plan benefits on a regular basis and the everyday expenses are covered only after one meets the deductible.

So, before actually signing up for Catastrophic Health Insurance just try to look into some aspects carefully including; the risk amount you can afford, search for a plan that fits in your coverage needs, try searching for the right price and try looking into different companies before actually taking up one, so as to avoid regretting afterwards.

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All in all the Catastrophic Health Insurance keeping every medical expense covered is the ideal choice for families with stable monthly income to help them during their most needy time completely.