Catastrophic Health Insurance
There are many people who goes by without any health insurance policy and it is almost unthinkable when any illness comes by. They could afford the health care fees for routine doctor visits on sickness like flu and cough, but, when a major serious illness happens, they might not be able to pay for the huge medical bill that comes with it. Without any health insurance plan, that will be a huge financial burden.
There are many reasons why people don’t purchase health insurance. One of the reason is due to the high premium rates and if cost is also a concern for you, why not take a look at another alternative; a plan that comes with low insurance premiums but with sufficient coverage that picks up the slack when it comes to huge medical bill: the catastrophic health insurance policy.
What is Catastrophic Health Insurance
Catastrophic health insurance plan, or also known as major medical plan, is a type of health insurance that pays only for major medical and hospital expenses; it does not pay for your visits to your doctor, prescription drugs, pregnancy or maternity care. Most catastrophic health insurance plans cover hospital stays, surgeries, diagnostic, intensive care, X-rays, and other hospital fees.
How Catastrophic Health Insurance works
Depending on your insurer, you will choose a higher-than-normal deductible which is normally in the region of $250 and $2,000. You will need to cover your medical costs up to that deductible amount and once you reach your deductible, the insurance company will cover the remainder of your medical costs up to a maximum benefit payment.
Many catastrophic health insurance plans have 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.
A Cheaper Health Insurance Choice
Unlike the indemnity plan and managed care plans health insurance, you pay a much lower monthly premium with the catastrophic health insurance plan. That is because you are required to pay for your own routine health care costs, like doctor visits, medications and your insurer will comes in only when you have used up your deductible amount with major medical and hospital expenses.
So, if you are living a healthy life, take good care of yourself and hardly visit doctor for medical treatment, the catastrophic health insurance plan might be a good alternative for you. With lower premium cost, you can cut down your health insurance budget significantly, without sacrificing essential coverage.
Filed Under Health Insurance