|
| Catastrophic Health Insurance |  "Catastrophic" also known as "major medical" plans are sometimes provided in the event an employer doesn't provide health insurance or if you simply don't want to pay for coverage that you do not need. Its main features are high health insurance deductibles and low monthly premiums. Having catastrophic health insurance plans, you tend to pay out-of-pocket for doctor's visits and prescription drugs, but main hospital and medical expenses above a certain deductible are covered. A lot of catastrophic health insurance plans include hospital stays, surgery, intensive care, diagnostic, X-ray and lab tests.
Basic Features of High-Deductible Health Insurance Plans
Catastrophic health insurance plans normally have deductibles beginning at $500 and going up. Many include high lifetime maximum benefit payments, also referred to as "caps," between $1 million and $3 million. Once the cap is reached, your insurance company will not pay for any medical expenses and your health insurance policy will become void. Also, it should be mentioned that a lot of catastrophic health insurance plans do not cover pregnancy, and other plans do not cover maternity care for a full year after your effective date.
Under a high-deductible plan, you have to pay your medical needs until the expenses reach the cost of your deductible. If you remove your coverage to lower your monthly premiums, you are taking a gamble on how much money you'll have to spend on self-health care. For instance, if your deductible is $15,000 and your surgery costs under that amount, you have to pay for the surgery out-of-pocket.
Do You Fit The Profile?
Usually people who purchase catastrophic health plans are either in their 20's, or between the ages of 50 to 65. Young adults normally purchase the coverage if they are self-employed or don't get coverage through work. On the other end of the spectrum, older adults buy a catastrophic health insurance plan when they worry about financial losses in the event of a heart attack, cancer or other dangerous illness. They tend to be healthier, on few or no prescription medicines, and are more interested in saving on their premiums, and would rather pay out-of-pocket for doctor's visits.
Frank McArdle, spokesperson for Hewitt Associates, affirmed, "Companies with 1,000 or more employees normally provide higher health insurance deductible plans. Retirees who aren't yet eligible for Medicare choose these plans in order to keep premiums down."
|
|
