Catastrophic Health Insurance Plans

In view of the current and relatively longstanding state of the economy, more and more people have been forced to cut their expenses in order to make ends meet. Some families go without medical insurance altogether while others have drastically cut the amount of coverage they have in order to get their monthly premiums as low as possible. In this way, families are still able to receive benefits if a major medical expense comes up, but are wholly responsible for routine doctors’ visits and the cost of prescriptions. This is known as catastrophic health insurance coverage.

What is True Catastrophic Health Insurance?

Catastrophic health insurance, in its purest form, is medical coverage that is extended to occurrences that the insurance company has classified as major or, well, catastrophic. The catch to this coverage is that the deductibles are usually quite high, with the minimum deductible being $500. More typical deductibles range from $1,500 to $5,000. Some are even higher than this. The insured is not eligible for any benefits until this deductible has been met. It is therefore a very good idea to reserve the deductible amount in an emergency savings account. Otherwise, the policy will not pay, at least not until that prerequisite has been satisfied.

What Does Catastrophic Health Insurance Cover?

Catastrophic health insurance coverage will vary from policy to policy and from one company to another. There are some policies now that will cover every day expenses once the deductible for the year has been met. These are more accurately termed as high deductible health insurance policies, but they are based on the outline of traditional catastrophic coverage. Maternity care, although a major medical expense, is also generally not covered. However, the coverage may be available for an additional premium fee; it is really up to the insurance company to decide whether they will make non-traditional benefits available or not.

There are also exclusions of benefits for people with certain preexisting conditions. Here again, however, some companies may be willing to offer benefits to people in this category for an increased premium or after a waiting period for benefits. Typical catastrophic health insurance covers most of the following after the yearly deductible has been met:

• Cultures, blood tests, and other laboratory expenses
• Imaging expenses such a X-rays, MRIs and CT scans
• Surgery
• Hospital admissions including intensive care

How Much Does Catastrophic Health Insurance Cost?

The amount of the monthly premium for catastrophic health insurance will depend on the level of coverage chosen and the size of the deductible. Some may be able to obtain coverage for as little as $20 or $30 per month. Others will pay more. A general rule is that the higher the lifetime maximum benefit and the lower the annual deductible, the higher the monthly premium will be. Age and health will also be contributing factors to the total expense. The best way to find out what the cost will be to any one person is to obtain a series of catastrophic insurance quotes online and compare the benefits versus the cost.