Catastrophic Medical Insurance

Health Insurance. Health Care. Premiums. Deductibles. Clincs. Doctors. Health Savings Accounts. Are you tired of hearing about health care? Like millions of other Americans, I am sure that you are. However, since this is a huge part of a person’s life it is important to make sure that you have the proper health insurance coverage. Are you considering a catastrophic health insurance plan? What are the benefits? What are the drawbacks? Let’s take a look at these plans and determine if they are a good idea for you and your family.

Catastrophic health insurance plans or high deductible health plans were created to provide lower medical costs to individuals by providing lower premiums. In exchange for these lower premiums you get a higher health insurance deductible. How much is a high deductible? It can be $1,000 and higher for individuals, and several thousand dollars for families. At this same time that you enroll in a high deductible insurance plan, you would enroll in a Health Saving Account or HSA. Generally, a person would open this account and immediately put the amount of the deductible into this account, and this money is not taxed.

Purchasing catastrophic health insurance can be done as an individual or with a group plan. As of right now, certain pre-existing conditions such as diabetes and mental health disorders mean you might not be able to qualify. You also must bear in mind that you will be paying a lot of your medical costs out of pocket before you reach your deductible.

For example if you need emergency surgery and it costs $5,000 and your deductible is $4,000, you will need to pay the $4,000 yourself. However, we know that $5,000 is just a drop in the bucket compared to what you can rack up with a week long hospital stay.

The best bet is to have an health savings account along with your catastrophic insurance plan, be relatively young and healthy, and be earning a decent income. Studies have found that people with low incomes are not good candidates for high deductible plans. Often times people put off going to the doctor because they can’t pay their deductibles. The high deductible plan protects the person that has a considerable amount of assets. People who have the money to open an HSA can protect themselves from high medical costs without having to dip into their other assets or that retirement fund. Usually these policies are for young healthy people who are not worried about health care or very old people who have enough money to cover whatever might happen to them.

There are of course lots of options out there as far as health insurance is concerned, and catastrophic health insurance is not different. Shop around and find out the best deal for you. Here are a few places to look:

United Health One: This is a company that offers many different options for health plans. They offer instant quotes online or you can phone a representative. They will advise you on setting up an HSA. Visit their website at www.uhone.com.

Providence: This Company provides very good material on why you should choose them for your health care needs. They have a variety of different plans that seem to cater to every income group. You can read about their basic, full, and comprehensive coverage.

Check them out at www.providence.org.

E Health Insurance: This is a cool company with a great website at www.ehealthinsurance.com. This site allows you to compare various companies side by side and decide which one is best for you. You can set up an account and the site is pretty much a one stop shop for finding coverage.