Catastrophic Health Insurance Coverage

A catastrophic or major medical insurance plan is ato protect against major hospital charges and not
deductible and comparatively cheaper form of healthroutine medical expenses. It normally does not cover
insurance with an element of speculation to it. Amaternity care, doctor's visits and prescription drugs.
deductible is the amount you pay out of your pocketCertain pre-existing medical conditions and cases
for medical expenses before the insurer pays theinvolving mental health and substance abuse are
balance. For instance, if your deductible is $5,000 andusually excluded from the coverage. A catastrophic
the hospital bill is $12,000, the insurance company willhealth insurance policy can be purchased as an
pay only $7,000. The general rule is the higher theindividual plan or as part of a group plan. In fact, there
deductible, the lower the premium. When you opt forappears to be a trend among employers to
this plan, you're gambling that you will not face majorencourage employees to opt for this type of medical
medical problems in the near future.cover. The maximum lifetime limit could be as high as
It is a calculated risk. According to one survey, the$3 million.
annual medical expenses of 90% of the U.S. populationRates vary according to where you live and your age.
are less than $2000; for 73%of the population, it isIn certain states, the saving on premiums could be
below $500.two-thirds. For example, a 21 year old, non-smoking
Two groups that normally opt for catastrophic healthfemale may pay as little as $30 per month as a
insurance are young people in their twenties who arepremium.
confident of their health condition, and older menIt is advisable to seek professional guidance from
between fifty and sixty-five who are still waiting forinsurance companies and/or agents and compare
Medicare eligibility.quotes before making a decision.
Catastrophic health insurance coverage is only meant