Health insurance is a crucial way to protect your health and comes in many forms, one of which is called a “catastrophic health insurance plan.” These plans have a significant advantage – they are affordable and protect you in the worst case. These plans do not cover everything that many other health insurance plans cover, but for people who rarely visit a doctor and are generally healthy.
How does a disastrous health insurance plan work?
A catastrophic plan is not available to everyone. The criteria include:
- Persons 30 years or younger
- People who have a “relief from difficulties” regardless of age.
The monthly premiums are low, but you pay a higher deductible. Once you have met your deductible, the health insurance company will pay for all the services covered, and you will not have to pay copayments or co-insurance out of pocket.
What does a catastrophic health plan include?
These high-deductible health insurance plans cover the necessary health benefits and preventive services from other plans, as mandated by the Affordable Care Act, which includes three primary care visits per year:
- Outpatient services
- Emergency services
- Care for pregnancy, motherhood and newborns
- Mental health and substance abuse treatments
- Rehabilitative care
- Lab services
- Pediatric services
- Specific health examinations
- Dietary advice
- Fall prevention
- Contraceptive coverage
- Many other
- Disastrous health insurance plans
Disastrous health plans may be the right choice for young, healthy people, as the premiums are more affordable. However, you must be aware that if you need extensive medical care, the deductible is higher, and so are your copays. These plans are covered if you develop a medical condition that requires more extensive medical care or have an accident and are hospitalized, require surgery or another “catastrophic”; event – after your deductible has been met. Please note that premium tax deductions cannot be used to pay for this type of insurance.
Catastrophic insurance coverage
Some other coverages include critical illness insurance, accident insurance (in addition to your car insurance) and “fixed benefit health insurance”, which provides cash payments for specific illnesses or injuries, as listed in your policy.
An affordable alternative to health insurance
The advantage of one of these plans is that you are covered for more serious illnesses and accidents after meeting your deductible. When you think about the cost of hospital stays, surgeries and ongoing treatments, this option is an affordable way to protect yourself – and your family – when an unexpected health problem arises. Instead of emptying your savings or needing financial support from your family to cover your medical expenses, your treatments are covered once you have paid the deductible.
Read more about catastrophic health insurance
If you are 30 years or younger, you are entitled to health insurance. People over 30 may be eligible if they apply for and are approved for an exemption from difficulties, such as a family member dying or incurring medical expenses that you cannot afford to pay, and certain other types of difficulties.
If you are young and healthy and need health insurance, talk to one of our friendly local agents who can show you the types of plans available to you and explain how those plans work.