What is Catastrophic Health Insurance?
As you investigate your healthcare options,
chances are you’ll run across plans that are labeled as being “catastrophic” plans. But what exactly does this mean?
Basically, catastrophic plans protect you in case of emergency situations, where you would have sudden unexpected medical expenses. They are most commonly used as safeguards to accidents or sudden serious health conditions. While the word “catastrophic” might not always be in the plan’s name (also look for “short-term” or “hospital-only” plans) they do all have the same general characteristics.
For people who are young, generally healthy or may be receiving health insurance from their employer in less than a year, catastrophic plans are typically the best option. Because these people don’t have many healthcare costs as it is, the lower premiums associated with these plans mean that they don’t have to pay for more coverage than what they need. While deductibles on catastrophic plans are usually higher, they still protect the insured from what would likely be extremely significant healthcare costs in emergency situations. This also means that you have a mark to gauge the point at which you should make an insurance claim. If the value of your claim would exceed your deductible, then it’s wise to pay off the rest of the deductible and let insurance take care of the rest.
If any of the following apply to you, a catastrophic healthcare plan may be your best option:
- You do not have any pre-existing medical conditions
- You do not take any prescription drugs on a regular basis
- You rarely have to make appointments with the doctor
- You cannot afford higher coverage plans
- You expect to be getting health insurance coverage from your employer within a year
- You only want or need to be covered for emergency situations
For more information about catastrophic healthcare plans,
we encourage you to contact us. Our insurance experts are happy to answer any questions that you have.