Catastrophic Health Insurance also known as High Deductible Health Insurance Plan is a kind of health insurance plan made to protect you against catastrophic situations. In other words, it is an emergency safety policy which guards you against unpredicted medical expenses. Hence, you don’t need to pay money other than when you are in need of such a medical coverage. However, these plans do not cover other services such as regular doctor’s visits, check-ups, prescription drugs etc.
This catastrophic insurance policy is of two types:
- Comprehensive catastrophic policy – These insurance are high deductible health policies which are very much affordable. The advantage is that at a lower monthly premium, you are covered against emergencies. E.g.: hospital stays, ambulance rides etc.
- Supplemental catastrophic policy – These insurance policies work as a supplement to other medical policies you already might have. These don’t include the coverage like those of a comprehensive plan. E.g.: psychiatric care, nursing care etc.
Once your deductible is convened, the insurance company provides coverage against major medical expenses. This is applicable to both the types of catastrophic policies.
The benefits for paying catastrophic health insurance premiums are many. First and the foremost thing is that it limits your emergency medical expenses. Imagine if a sudden catastrophic situation arises and you are not covered, then what will happen? Possibly, you will be worried especially if your money is tight. In anyway, you will have to pay a great deal of medical expenses. Thus, this is where the importance of catastrophic health insurance is highlighted. With these insurance you will save money as the monthly premiums are reasonably priced.
Catastrophic Health Insurance Plans – Pros and Cons
However, everything has its pros and cons. That is why, on the other hand, it has some cons too. That is, it may cost you higher than average annual deductibles. Moreover, most of these have maximum lifetime benefits. Thus, once such benefits have been paid out, the policy gets cancelled and the insurer won’t pay medical costs.
Therefore, it is always recommended to check whether it is suitable for you or not. The ones likely to benefit from this insurance are those who rarely go to the doctor. That means if you don’t have any chronic medical condition or are not on regular prescribed drugs, then it will be good to get insured under the policy. In fact, these are ideally suited for hale and hearty people who have no track record of any medical illness.