The Real Truth About Health Insurance

Catastrophic Health Insurance - Unbiased Review

Catastrophic health insurance – also referred to as high deductible or major medical health insurance – was created as a way to reduce monthly health insurance premiums in exchange for a higher annual deductible. With this type of plan, the patient is responsible for nearly all medical expenses until the deductible is met. The insurance policy will kick in and pay the bills when this amount is exceeded. Not everyone will benefit from such a plan structure. Often, plan deductibles exceed $1,000 per year, with an out-of-pocket maximum per year. Usually, with these plans, the maximum benefit amount, also called a cap – which is the maximum amount the insurance will pay out over the insured’s lifetime – is much more than non-catastrophic insurance.

Get Straight Facts on Catastrophic Health Insurance

Catastrophic health insurance often does not cover preventative care, and may exclude pre-existing conditions. The types of people who would benefit from these plans are those who: 

• are generally healthy overall 
• don’t need to go to the doctor frequently 
• need temporary coverage between gaps in insurance coverage 
• have adequate financial strength to cover most routine medical needs.

Catastrophic Health Insurance

Catastrophic health insurance is usually available as a group or individual plan, and is offered by most health insurance providers. As mentioned before, pre-existing conditions may be subject to exclusion or a waiting period, so you should ask the insurer for specifics. Check with your insurer for details on disqualifying conditions. However, most relatively healthy people who do not need regular medical care, might want coverage for unforeseen major accidents or illnesses, or need coverage between jobs would certainly benefit from this plan type. Group catastrophic health plans are subject to HIPAA (Health Insurance Portability and Accountability Act) regulations and guarantee that you cannot be denied coverage, but you may have to wait before pre-existing conditions are covered. Check with your insurance provider for more details.