Catastrophic health insurance is a health insurance policy that is popular among independent young individuals, college students, and people looking for cheap coverage health insurance. In the recent times the amounts of people opting for this catastrophic insurance have increased in numbers.
The reason behind this is the financial crunch faced by many families and individuals, which has resulted in making them to cut their expenditure on health coverage. However, it is important that you must have basic knowledge about this medical insurance option before you decide to take it.
This high deductible health plan is designed for the people who don't want a health insurance plan that gives full pharmacy coverage, full cost of regular health care, clinic visits, and other such health expenses.
People who take catastrophic insurance get their coverage only for emergency health situations like car accidents, heart attacks, trauma, wounds, etc. These plans were initially designed to capture the low-end of the market and their premiums are nearly 40% less than that of normal health insurance.
The coverage of this health insurance plan is less, but it is better than situations when hospitals turn away patients due to lack of payment means.
Catastrophic insurance plans are generally divided into two categories and both of them are described below:
- Comprehensive Health Insurance: The comprehensive insurance plan as the name suggests gives more coverage. You could easily say that this insurance plan is the closest to the services that you get in any regular health insurance plan. Under this plan you get the facility to access treatments, pharmacy, and visits.
However, you have to pay the money from your pocket until your deductible is reached either in each instance or at an annual limit. The price you pay for this type of health insurance is way less than what you pay for regular health insurance, but it's costlier than supplemental insurance plans.
- Supplemental Health Insurance: The supplemental insurance plan as the name suggests is like an add-on to your existing health insurance policy. These plans are specific about their areas of coverage that include medical care, treatment, and equipment. The premium of supplemental health insurance plans are usually the cheapest among all types of health insurance.
Generally the users of catastrophic health insurance, who are taking their first insurance, choose a comprehensive plan and start with basic coverage options. However, you must know that catastrophic medical insurance doesn't cover the present chronic conditions that you might be facing.
There is no-way you could get coverage for your ongoing medical needs.
Benefits of Catastrophic Insurance
1. Monthly insurance premiums are easily affordable.
2. During emergency situation it could help greatly to limit your medical expenses.
For the people who are thinking of immediate costs high deductible health plan is the best option. However, you must know that it is better to study thoroughly the catastrophic health insurance plan before selecting one. Therefore, you must compare insurance coverage provided by different plans so that you get the best deal for your money.
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