| Health insurance can be very expensive and millions of | | | | If you can couple your catastrophic health plan with a |
| Americans are uninsured. The monthly premium | | | | health savings account or HSA, this could help you pay |
| payments are simply too expensive for a lot of people | | | | for the occasional medical costs not covered by your |
| to budget for. If you are a healthy person that does | | | | high deductible plan. An HSA is a savings account in |
| not visit the doctor on a regular basis but you would | | | | which pretax dollars are deposited. The funds in this |
| still like coverage in case of a serious illness or injury, | | | | account can be used to pay for medical expenses |
| catastrophic health insurance could be a perfect | | | | and withdrawals for medical expenses are not subject |
| solution. | | | | to federal income tax. You are effectively paying for |
| A catastrophic health plan is also known as a high | | | | your medical costs with tax-free dollars. |
| deductible plan. With this type of plan most medical | | | | For someone with a chronic illness or a nagging injury |
| costs would be paid out of pocket because the | | | | that needs to visit the doctor on a regular basis a |
| deductible is so high. But if you rarely visit the doctor | | | | more traditional health plan would be required. For |
| that won't be an issue. These types of plans are | | | | someone who is generally healthy and just wants to |
| meant to protect people from being financially | | | | have coverage to pay for major medical expenses, a |
| devastated in the event of an accident, serious illness, | | | | catastrophic health insurance plan coupled with a |
| or injury. | | | | health savings account is a great option. |