Catastrophic health insurance sounds scary but all it’s just a type of health insurance where you pay low monthly premiums with much higher deductibles, but have to pay for your own regular medical costs like doctors visits and any medications you might be prescribed. This type of option is not ideal for everyone. The catastrophic health insurance policy comes either as comprehensive or supplemental. The comprehensive catastrophic health insurance policy will cover you more than the supplemental one but will also cost a little bit more. It’s also known as the High Deductible Health Plan or HDHP.
This type of plan may be good for those who are self employed or don’t have a traditional health plan or can not afford one. The less you visit the doctor the more useful this type of insurance is because monthly premiums are low and what you pay for is your doctor visits and any prescription medicine. For certain individuals it can definitely save them lots of money compared with traditional health plans.
Before deciding on a catastrophic health insurance policy, there are some things you need to consider.
1 – How much is it going to cost you monthly and can you afford it? It’s important not to get yourself into a financial commitment that may not be suitable for your needs or your income level. Don’t overcommit yourself.
2 – How often do you get sick or take prescription medicine? With catastrophic health insurance you are going to have to pay for your regularly medical fees like doctor visits and prescription medicine. This insurance does not cover this, it covers a catastrophe. If you frequently visit the doctor and take regular prescription medicine than this plan might not be the best one for you. It’s best suitable for people who don’t frequent the doctor too often.
3 – Is this the best rate available on the market? Just like any other insurance, catastrophic health insurance comes in different shapes and sizes depending on the company you decide to sign up with. It’s best to ask questions and do your research before settling on any one policy.
4 – What are you actually covered for? Read the fine print and find out what you are covered for. Not every insurance company is going to offer the same conditions and there’s always room to negotiate. This type of insurance should cover most catastrophic diseases or illnesses which may arise, including hospital visits, surgery and any intensive care that may be required.
When you decide on a company make sure to ask them lots of questions and get as much information as possible. If you’re not happy with something ask about it and see if you can negotiate. These days where everything including our health is so uncertain it’s important to be covered, catastrophic health insurance might just be the right plan for you.