Trying to find the right health insurance policy to fit you and your family can be a bit of a challenge. The whole reason to have insurance is to protect yourself and your family in the case of an emergency. However, when money is tight you do not want to be paying for coverage that you do not really need. If this sounds like your situation, catastrophic medical insurance may be the right policy for you.
Catastrophic insurance is basically a type of fee-for-service health insurance policy that has been designed to provide protection against a catastrophe. It can sometimes be referred to as a High Deductible Health Plan because you pay low monthly premiums in exchange for a higher deductible.
This means that your routine visits to the doctor and your prescription costs are more expensive, but the monthly premiums that you pay are much lower. It also means that if you are healthy you will save money. If something significant happens however, you are still covered.
You basically pay for what you need rather than paying for what you might need. This means that once the deductible is met, the same percentage of the total visit fee is paid whether you are seeing a general practitioner, or a specialist. Therefore, you are free to choose the best course of action that will suit your health care needs.
There are two basic types of catastrophic plans that are available, comprehensive and supplemental. The comprehensive plan offers comparable coverage to that of a more traditional health care plan.
The comprehensive plan advantage is that you are covered for emergency services like a ride in the ambulance or a trip to the ER, but you pay a lower premium than that of a traditional plan. A supplemental plan acts as a supplement to the other insurance plans that you may have. Nursing care, medical appliances, and psychiatric care all may be included in a supplemental plan.
With both types of catastrophic insurance plans, once you have paid all the deductibles, the insurance company will cover all major medical expenses that the company deems as necessary. This can include surgeries, hospital stays, intensive care, and lab tests. Just like the other insurance plans, there is no coverage for elective procedures
Catastrophic plans are most popular with those who are self-employed, or those who have jobs that do not offer health plans. It is also popular with people who have a lower income and are looking for a type of healthcare safety net, as well as healthy adults who have low medical needs.
The ideal person for this type of insurance policy would be someone who is healthy, has very few or no monthly prescriptions, and who does not need to visit the doctor on a regular basis.
Seniors who purchase catastrophic insurance do so to help limit their financial liability in the case of serious event like a heart attack or stroke. Traditional health insurance policies are often unaffordable for the elderly, even if they qualify for it.
Your health needs, how much insurance is provided by your job, and how much income you have to spend on your insurance premiums are all factors in determining whether or not catastrophic medical insurance is the right choice for you.