Catastrophic Health Coverage

These are policies that for the most part pay major hospital and medical expenses.

Catastrophic health insurance is medical coverage made affordable by having a high deductible and a low premium.

It is designed for patients who are generally healthy and do not necessarily have the need to visit their physician regularly. The plan usually does not cover regular doctor visits (checkups, etc.) but it does provide major hospital and medical expenses coverage. If you are in good health and only want to be covered just in case of a major illness or accident, then a catastrophic health plan could be the best option for you.

Catastrophic health plans usually cover hospital stays, x-rays, and surgical expenses, but do not normally cover mental health care or maternity care.

Do I Need a Catastrophic Health Insurance Policy?

There are primarily two groups of individuals who tend to purchase this type of coverage; those who are either young adults and are healthy or individuals between the ages of 50 and 65.

For self-employed young adults, or those employed without sufficient benefits, catastrophic health coverage might be just right so as to protect against any financial difficulties that can arise due to major health crisis.

For those between the ages of 50 and 65, purchasing catastrophic health insurance can also be a wise decision should any serious illness such as cancer or heart disease develop.

Am I Ineligible for Catastrophic Health Insurance?

If you have a pre-existing condition such as AIDS, diabetes, heart disease, or cancer, then you are not eligible for catastrophic health insurance.

What Will a Catastrophic Health Insurance Policy Cost?

Catastrophic health insurance can offer a very low premium when compared to other health insurance plans. Keep in mind though that the deductible range can be high (from $500 - $15,000).

Should you need hospitalization, your high deductible may possibly cost more than what was saved by having a lower premium, but on the other hand should you remain healthy the substantial savings on premiums could assist financially if income limitations are an issue.