Catastrophic Health Insurance
January 12, 2009 – 1:05 amby Jeff Cline
In today’s economy everyone is looking to save a buck. We are cutting cost where ever we can. We are scrimping in every area just to get by. One of the first things we look at is the cost of health insurance. Rates keep increasing, yet our income is not. Many consumers are opting for catastrophic plans or what is also known as Major Medical only plans.
Catastrophic plans are the most affordable plans available to consumers. It makes since that many consumers are replacing there current benefit plans for this to avoid being completely uninsured. Many can not afford health insurance, but knows without it they could end up in financial ruin.
Below are a few things to consider before making the plunge to a Catastrophic plans. It may be necessary for some people to make cuts in other areas instead. So before making decisions think about this:
Sometime a Catastrophic plan can have a deductible as high as $10000. If you have a medical condition that is a lot of money to pay before the insurer helps. In which case this type of plan may not be beneficial.
Catastrophic plans are great alternatives for those people who do not use their current insurance often and is comfortable just knowing they will have coverage if an unforeseen illness or accident should occur.
The plan you have now probably allows you a doctor visit with a co pay benefit. You will be compromising that benefit with a catastrophic plan. Is that something you are ok with? You can expect to pay for things like a visit to the doctor, a lab test and even emergency room visits.
There are other plans that have high deductibles and allow you to make contributions that you can use towards office visits and other medical expenses you occur prior to the deductible being met. These plans are called HSA or Health Savings Account plans. Some even allow for a preventative exam each year.
Think about your options and what you really need and make a good wise decision. Going uninsured or not having enough coverage to meet your need may lead to more financial trouble then it is worth.
Tags: health insurance, individual health insurance, Travel & Tourism
