Catastrophic medical insurance coverage is a low cost health care option that provides major medical protection at the best possible rate. Quoted premiums are typically 30%-60% lower than a standard comprehensive policy and this type of plan is perfect for individuals or families that want affordable health care and are willing to assume some additional risk. They are also known as “High Deductible Health Plans, (HDHP), and are necessary if you are going to set up an HSA. If covering emergencies are your main goal, then this type of option will be very suitable.
What Do They Cover?
Typically, Catastrophic health care plans are designed to cover large expenses and catastrophic illness, such as inpatient and outpatient hospital stays, emergency room bills and surgeon, assistant surgeon and facility charges. Other coverages include radiation, chemotherapy, organ transplant drugs, MRIs, CAT Scans and common inpatient expenses such as room and board, intensive care unit, operating and recovery room and physician visits.
Supplemental plans are different and are designed to simply “add on” to existing benefits. An “AFLAC” contract would be one example that would add to, but not replace an in-force policy. The duck would be optional!
Other coverages vary, depending on the type of policy and company. Most plans in this category will have a cap that limits your out of pocket expenses for the calender year. It may be a few thousand dollars or possibly more. You can purchase contracts with extremely high caps of $20,000 or more. Of course, the price will be very inexpensive since you are inheriting more risk.
Where Do You Buy Catastrophic Medical Insurance?
We specialize in low cost high-deductible health care plans. With soaring medical insurance rates in most states, reform and Exchanges are actually expected to INCREASE costs, not decrease them. We research all of the top companies with state-of-the art software to provide you with the lowest quote provided by every carrier.
In less than two minutes, our website will make it possible for you to view affordable coverage from the top-rated health insurers. We never use any type of “discounted” plan and only recommend plans that meet your personal needs. Of course, rates from one company could vary quite a bit in different parts of the country.
Is Catastrophic Coverage The Best Type Of Plan For You?
If you are in good health and are rarely hospitalized, then high deductible coverage might be your best option. Typically, you will save hundreds of dollars per month compared to a comprehensive medical plan. If you have substantial assets to pay for your out-of-pocket costs (up to the deductible), you may be a good candidate for this type of policy.
Choosing the right deductible will be important since you will be required to pay that amount (plus any applicable coinsurance) if you have a major claim. The most popular catastrophic policies, such as the UnitedHealthCare “Saver 80” plan, often feature deductible options ranging from $500 to $10,000. Occasionally, you will find a company that will quote a deductible as high as $25,000. Since hospitals will often negotiate a bill with you, increased risk is growing in popularity. After 2014, the “Bronze” option will be your best choice.
What Is A “High Deductible Health Plan” (HDHP)?
An HDHP is a catastrophic health insurance plan that features high deductibles for individuals and families. The minimum is $1,200 for individuals and $2,400 for families. It is combined with a Health Savings Account (HSA) to provide an option to traditional medical coverage. You can pay for qualified health care expenses on a tax-free basis and retain greater control and flexibility of how you use your benefits.
You pay no federal income tax on the funds you deposit and there is no penalty on the earnings once you use the account for those expenses. Once you have enrolled in an HDHP, you may qualify for the HSA; however, it is important to check with the insurer to verify it is an HSA-eligible plan.
HSAs are widely available and rates will vary, depending on the state where you live. When you request a quote from us, you will be able to view many types of options from multiple carriers with various deductible options. They provide preventive benefits without having to meet the deductible. We’ll be happy to review your specific situation and recommend the HSA(s) that will save you the most money. If you are reasonably healthy, the higher deductible options may save you the most money, the longer you keep the policy.
Can I Purchase Temporary Catastrophic Coverage
There are many available options if your need is temporary. Many insurers offer “short term” plans which are typically used when less than 12 months of coverage is required. This type of policy works best if you are without coverage, unemployed, just graduated or are considering Cobra. Premiums are substantially lower than a typical plan, and policies are normally issued within 1-2 days. In many states, Humana, UnitedHealthOne, Celtic and Assurant offer extremely competitive rates. Blue Cross also has very good temporary rates.
If you need help with obtaining prices on this page, please let us know. It will help you protect what’s important, but at a low cost. We believe in shopping to pay less for your benefits, as long as you retain quality.