Catastrophe health insurance is also being called high deductible health plan because the low monthly premium is traded for high deductibles. This insurance system may seem complicated but the principle is quite simple. If you are healthy and are not covered with any health insurance, you might want to consider the catastrophic insurance because you won’t have to pay very high premiums yet in case of accidents or you had an illness, you will be covered. If you are old and healthy and would like to have additional medical health insurance, then you can use this insurance on top of your regular medical plan. Catastrophic health insurance may include nursing care, medical appliances, and psychiatric care.
Generally with catastrophic health insurance, you are paying for what you need instead of paying for what you ‘might’ need. Meaning once the deductible are met, you are paying for the rate of your per visit fee, it does not matter whether you are seeing your own doctor or a specialist. In this type of insurance you have the power to choose the doctor you trust. To some people, this works better because the trust in the doctor can produce a healing effect on patient.
Two Types of Catastrophic Health Insurance
There are a couple of types of catastrophic plan, the supplemental and the comprehensive health plan. In both plan types, once the deductible are met, the insurer would shoulder all other medical expenses that are necessary including the surgeries, intensive care, lab tests, hospital confinement except for elective procedures, just like any other medical insurance.
The supplemental type as the name suggests acts like a supplemental insurance program that you can avail on top of your existing medical insurance. Comprehensive type, on the other hand, is more inclined to the conventional health care plans except that you will have higher deductible and lower premium. The great thing about this is that you will be covered in cases of emergencies like a ride in an ambulance or a trip to the emergency room. The monthly payment for this type is higher than the supplemental type though both have way lower premiums than traditional health care insurance.
Who Needs Catastrophic Health Insurance?
Every body needs a medical insurance coverage for all the same reason; you want to protect your finances from unfortunate events, except that with catastrophic health insurance, you don’t have to risk too much cash. This type of insurance is great for those who do not have a job and are not medically insured. If you don’t have a job, you simply couldn’t afford to pay for high premiums but it does not mean that you will be spared from accidents or any unfortunate events, right? Catastrophic insurance will have you covered. For older people who are lucky not to have any health issues, this option would be best for you to cover for cancer or heart attacks. If you do not fall into any of the above mentioned categories then you might want to opt for another type of medical insurance policy.
How Catastrophic Health Insurance Works?
Of course in deals like these, there is something that you would need to compromise, you can’t just get an insurance plan with low monthly premiums and have the insurer pay for all of your medical bills, this is the case but not exactly like that, because you would have to pay for the deductible first before the insurer would pay for your medical expenses. For example if your policy agreement is 20/80 meaning 20% to you and 80% to the insurer, if you are hospitalized for any reason and your hospital charges reach about $5,000, 20% of the bill will be charged to you, so you would have to pay for $1,000 before the insurer would pay for the $4,000. Now if you have already met the deductible and have undergone another medical procedure, you won’t have to pay for anything else as long as you meet the deductible for that year. Doctor’s visits are not included in the deductible, though some companies would include two visits per year.
In conclusion, catastrophic health insurance is a great way to save yourself from unfortunate events without needing to shed off a lot of money on your monthly premium. In cases of accidents or any sudden illnesses, you would be covered. But you need to consider some things like your ability to shoulder the co-payments and the out of the pocket expenses and of course the size of the deductible.