Catastrophic Health Insurance Plans

Providing for your health is a must given the expensive medical services today, and catastrophic health insurance is one increasingly means to do it. You do not have to suffer from a chronic condition and you do not have to be old or have children to ensure you have affordable access to good quality health care. Buying the right health insurance package might turn out to be a bit daunting as you have to do a preliminary research and compare quotes. Also there is a common misconception that getting quotes is quick and easy. In fact getting insurance quotes is a significant part of the task and tends to be quite time consuming. That is why you should use some helpful tricks in order to spare yourself the whole unpleasant hassle.

First, you can visit the various government websites such as USA.gov where you can find much free information. This is beneficial for a number of reasons. On these web pages you can find general information on the types of health insurance available and the standard cost range you can expect. You will also be able to find out more on how the health care plans work and what services they usually cover. There might be some helpful warnings posted about health insurance companies who employ malicious practices or try to trick customers. You can be certain that all the information you find on these official websites is provided to aid you in making the right decision and not in persuading you to buy a certain type of product.

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Health insurance can be a security blanket for people who don’t want to be caught off guard by unexpected medical expenses. But getting the right one is a tricky business.

One type of policy specifically designed for these purposes are catastrophic health plans. Catastrophic health insurance, sometimes called “major medical”, is a type of insurance policy that shoulders “major” medical hospital bills but not doctor visits, drug prescriptions, or maternity care. This is the cheapest of all health insurance plans, and is meant to cover, as the name suggests, a catastrophe without creating financial ruin. For starters, the amount one has to pay for a claim called deductibles start at $500 and then goes up to $5000 or more. The cap, or lifetime maximum benefit, of most plans starts off at $1 million to $3 million. Once the cap has been reached though, you are no longer entitled to receive benefits and your plan is annulled.

If you’re a relatively healthy person who isn’t taking any drug prescriptions and wants to save money on your health policy, then a catastrophic health insurance may be a good insurance plan for you to avail. A retired person and people who are not yet qualified for Medicare benefits may also find that a catastrophic health insurance plan is a good choice for them.

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Even for catastrophic health insurance there are a number of options available. From the type of plan to the different types of deductibles and coinsurance there are so many choices. Once one selects a health insurance plan there are additional services that one can add to the health insurance plan to increase one’s coverage for specific health concerns. These additional services are known as optional benefits that can be added to the health insurance policy. For an additional amount added to the premium an individual can receive additional coverage that is not included within the health insurance policy.

There are a variety of different optional benefits that an individual can add to their policy, even if they opt out of regular coverage in favor of a catastrophic insurance plan. One of these benefits is maternity coverage. This is one of the most popular optional benefits that are offered by health insurance companies. The maternity coverage applies to all services that a woman will need for a routine pregnancy and delivery. This optional benefit provides coverage for pre-natal visits to the actual delivery of the baby. The costs that are covered by the insurance company vary according to the health insurance company. In most cases there is an option to choose a specific benefit amount for maternity coverage and the policy will cover up to a certain percentage of the benefit amount. The main stipulation that should be noted about the maternity coverage benefit is that it is usually required that the pregnancy begin after the benefit is in place. If this optional benefit is obtained after a woman becomes pregnant than their usually a waiting period of at least nine months before the maternity coverage becomes applicable.

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By Melanie Ullman
More and more people are considering buying catastrophic health insurance, and many of them may not be completely apprised of what is and what isn’t covered. This itself could be a catastrophe, particularly when you make assumptions about your coverage. This is the most important consideration not only in considering whether or not to purchase, but specifically what you are getting in the various available catastrophic health plans.

There are just some things that may catch us completely off-guard. In an unexpected turn of events, a smooth-sailing everyday existence could just about turn into catastrophe. It is true that we do not know what the future holds, so we might as well prepare for it today.

It is important to make wise investments. Your parents must have told you that a million times. With the thought that you are not getting any younger, comes the realization that you need to make one major investment concerning your health – getting health insurance.

A health insurance policy will typically cover expenses that are related to your stay in the hospital, surgical procedures, laboratory tests, visits to the doctor, pregnancy care, and your purchase of prescription drugs. However, this does not come cheap. Some people, especially those who are not employed, opt not to buy health insurance policies because of its high cost. The good news: there is a cheaper form of health insurance you can readily afford – Catastrophic Health Insurance.

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By Melanie Ullman
Catastrophic health insurance plans are “fee-for-service” health insurance policies that provide you with protection against a catastrophe such as catastrophic illness or accident. The main function is to limit your financial liability should you have a serious problem like a heart attack or stroke or a heart attack. Catastrophic coverage is often purchased by those who are self-employed, or in cases where an employers plan offers only limited coverage. This type of insurance, sometimes referred to as High Deductible Health Insurance,  is also popular for those with limited incomes or are in very good health, and who don’t necessarily want to pay for basic coverage that they may not want or need.

There are two basic types of catastrophic health insurance plans come in two basic forms, comprehensive and supplemental. With a comprehensive plan the coverage you get is somewhat comparable to a common traditional health care policy. You would likely have low monthly fees and a very high deductible. The primary reason for getting a comprehensive plan is so that you cover yourself for emergency services, such as emergency room visits or ambulance ride, while paying a lower monthly premium than a you would have to pay with a traditional insurance plan. A supplemental plan on the other hand acts in conjunction with whatever existing insurance plans you might have. The benefits of a supplemental plan would be to offset the costs that aren’t covered in your basic plan, such as psychiatric or nursing care, medical appliances, etc.

Most commonly, a catastrophic insurance policy is purchased by relatively healthy, young individuals who don’t anticipate or want to visit doctors on a regular basis, and don’t need or aren’t concerned with any sort of prescription drug coverage. Older individuals also seek this type of policy to limit their financial exposure, particularly as traditional health insurance may be unaffordable given their age, or where they may not even qualify for it.

If you have an HSA, or Health Savings Account, you can use those funds for qualified medical expenses. An HSA allows you to make tax-deferred deposits, and the money stays with you even if you leave your employer or terminate your insurance plan. You can also invest the money you have accrued in your HSA while sheltering all of it’s earnings from being taxed.

It’s important to know that in addition to conditions that might exclude you from a traditional health plan, there are even more conditions that can qualify to make you ineligible for catastrophic coverage. Most of these plans also suspend maternity coverage both during and after pregnancy, sometimes for up to a year.

Still, for those individuals with the appropriate needs and circumstances, catastrophic health insurance coverage can be the ideal alternative to paying for unnecessary or unwanted services, while minimizing the risk of financial ruin in the case of an accident or serious medical condition. Needless to say, it pays to be thorough in considering the types of plans and providers, and carefully weigh the costs and benefits against the foreseeable future.

If you do fit the profile, though, this kind of plan could be perfect for you. That is why it is vitally important to be careful, thoughtful and deliberate when shopping for your health insurance.