| Catastrophic health insurance coverage reduces rates | | | | eligible medical, dental and vision expenses. This type |
| by covering major medical expenses at extremely | | | | of account allows consumers to have more control |
| affordable premiums. Most large health insurers such | | | | over how they spend their health care dollars. Rates |
| as Blue Cross, Aetna, UnitedHealthCare, Cigna and | | | | also are lower than traditional medical insurance plans, |
| Assurant offer this type of coverage for their individual | | | | allowing for additional funds to be deposited into the |
| and family plans. Also, short-term temporary plans tend | | | | HSA Account. Self-employed individuals and families |
| to feature catastrophic benefits instead of routine | | | | often purchase HSAs to reduce costs and take |
| medical expenses. | | | | advantage of the tax benefits. Any funds that are not |
| Typically, catastrophic health insurance policies provide | | | | used by the end of the calender year can be rolled |
| coverage for inpatient and outpatient hospital | | | | over to the next year. |
| expenses, emergency room charges, anesthesia, | | | | Catastrophic health insurance plans are ideal options |
| X-rays and lab tests, surgical expenses and | | | | when you are primarily concerned with covering major |
| professional fees of doctors, surgeons and other | | | | expenses and are willing to pay a relatively high |
| medical providers. Occasionally, preventive benefits will | | | | amount of out-of-pocket money for these types of |
| be provided. However, most catastrophic plans do not | | | | claims. Generally, over time, the money saved by |
| pay for office visit and prescriptions. Occasionally, | | | | purchasing these types of plans more than offsets |
| limited office visit benefits may be covered, but a | | | | your out-of-pocket losses. Of course, you can lower |
| deductible will probably apply. | | | | the deductible on a catastrophic plan to reduce the |
| A "High Deductible Health Plan" (HDHP) is another form | | | | rate that you pay. Many insurers will offer deductibles |
| of catastrophic coverage. An HDHP is an inexpensive | | | | as low as $500. |
| health care plan that typically does not pay for the first | | | | High deductible plans are growing in popularity as |
| several thousand dollars of medical expenses. | | | | premiums health care premiums continue to rise. |
| However, after those expenses have been paid (your | | | | Although this type of coverage does not meet every |
| deductible), the policy pays 80%-100% of remaining | | | | person's needs, as national health care reform forces |
| expenses. HDHP plans are required if you are going to | | | | rates up, catastrophic health insurance, if available, will |
| open up a Health Savings Account (HSA). However, | | | | continue to be a very popular choice. If future state |
| you are also able to take out an HDHP without using | | | | health insurance exchanges do not offer |
| the HSA feature. | | | | high-deductible plans, policies will be able to be |
| HSAs are affordable alternatives to traditional health | | | | purchased outside of the Exchanges. |
| care designed to use tax-deductible funds to pay for | | | | |