Catastrophic Health Insurance Plans

The economy just hasn’t been very good to many people for the past several years. As a result, many have been forced to pick and choose their health insurance or go without it altogether. Of course, getting rid of health insurance completely is never a good idea, but what other options are there when premiums are so high that it is difficult to keep up with any other bills? Catastrophic health insurance coverage could be the answer, and it is one that many all across the nation have already turned to.

What Is Catastrophic Medical Insurance?

Catastrophic health insurance has taken on many different incarnations over the recent years, but true catastrophic coverage is exactly what one would think given the name. It is health insurance that provides benefits in the event of a major medical emergency. Very rarely does is cover basic medical expenses like trips to the doctor and prescription medication, but it is there for the really big events that most people would not be able to afford if they saved their annual salaries for 5 years. Catastrophic health insurance policies do come with some pretty hefty deductibles, however, and these deductibles must be met before the policy will award any benefits.

How to Decide if Catastrophic Medical Insurance is Adequate Coverage

Some insurance is better than no insurance, but if one will not be able to meet the annual deductible in order to receive benefits it seems a bit of a waste to pay the premium. So how does one decide whether it is worth it or not? Here are some things to consider:

• Age and relative health: Younger persons in their twenties and even early thirties very rarely become sick enough to require a hospital stay. They can, however, be involved in major car accidents. Catastrophic health insurance coverage may be adequate to provide benefits in the event of an emergency for this age group, provided the individual is able to put back enough money to cover the deductible.
• Persons who are prone to sickness and spend a great deal of time annually in and out of doctor’s offices may find the deductible hard to meet. By the time it is met, it is usually time for a new year to start and the cycle renew itself. This makes it difficult to set aside any money for a higher deductible. In this situation, traditional health insurance may be a better option.
• Financial resources: If a person has a family history of major medical illnesses but has not yet been diagnosed with the disease, it may be worth the small premium every month to prepare for the unknown. This is especially true if financial resources are as such that a diagnosis of a major medical condition would cause a particular hardship on the household.

Ultimately, the question of whether catastrophic health insurance coverage is adequate depends on the individual and the situation. Exploring all of the options and obtaining quotes can go a long way toward deciding which type of medical insurance coverage is right for the individual or family.