When it comes to insurance, should you choose catastrophic health insurance or hospitalization only? Is there even a difference? If these two terms are confusing you, we may be able to help. Here is a comprehensive look at the differences between catastrophic health insurances and hospitalization only, and how those differences could affect your health coverage.
Hospitalization Only vs Catastrophic Health Insurance
With advancing medical care, hospital stays are growing shorter and shorter. Some of the procedures that only a few years ago would have called for a two day stay in the hospital are now being done as outpatient procedures. So what do you do when you want a great health insurance policy that can provide you with coverage during these times? You turn to catastrophic health insurance.
Many individuals purchase hospitalization only insurance because of its low premium, and a high deductible. Most of these policies come with a $1,000 deductible, which is great when you need coverage for hospital stays. However, there are a few downfalls to this type of insurance.
- Only inpatient hospital stays are covered
- Riders can typically not be added to help with doctor’s visits, prescription medications, and maternity care
- If you require x-rays or an outpatient surgery, you will not be covered under this type of insurance.
- ER visits that do not lead to admittance are generally not covered
These restrictions can cause huge problems and lead to costly medical bills if your emergency situation does not call for an inpatient procedure or stay. Many times, you are sent home before you are fully healed from an in patient procedure. Without prescription coverage, you may not be able to afford the medications you need to rest comfortably and heal properly.
Catastrophic health insurance is usually a much better solution, especially if you are looking for a low cost insurance policy with a high deductible plan. Deductibles range from $1,500 to $2,500, but you are covered for many more procedures, tests, and visits than you are with hospital only care.
You will be covered for:
- Inpatient hospital care
- Needed x-rays, cat scans, and other diagnostic tests
- Outpatient surgeries
- Emergency room visits, with or without admittance to the hospital
- Ambulance rides
- Emergency maternity care
Catastrophic Health Insurance
Catastrophic health insurance provides more than low premiums and hospital care. Many catastrophic health insurance plans also offer riders, which allow you to add on the coverage you need. You may be able to add a rider for doctor’s visits, allowing you to see your regular physician when you need to with only small co-pays. Some catastrophic health insurance plans also provide prescription riders, which will help you pay for your high cost prescription medications after you leave the hospital. Others offer even more coverage by providing you with a maternity rider, which will help you make sure your unborn child is well taken care throughout your pregnancy.
Catastrophic health insurance and hospital only insurance are two completely different types of insurance policies. Before you sign up for either one, make sure you know what these differences are so you can be fully covered in the event of an emergency.
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