Catastrophic Health Coverage – Better Than Comprehensive Cover ?

A growing number of employers are giving a choice of catastrophic health coverage or comprehensive coverage these days. Of course, like everything else, there is good news and bad news about this choice. In general, catastrophic health coverage may not provide adequate health care for the average person. Consider these points before purchasing catastrophic health coverage.

With comprehensive health insurance, you basic medical needs are generally covered. You can go to the doctor, have tests, go to the emergency room fairly secure in the knowledge that your insurance will help you with these expenses. You know you will pay a deductible and co pay. You imagine your costs could be anywhere from two hundred fifty to one thousand dollars. With these lower co-pays and deductible, the average person can pay for their medical care.

catastrophic health coverage has very low monthly premiums. The coverage is easier to afford. The reason the monthly premiums are lower, however, is that the deductibles are much, much higher. Deductibles run from $1250 to $5000. Additionally, a maximum payout applies. This can run any where from a million dollars to three million. Once you hit the maximum has been reached, you are out of coverage.

So it may seem that the lower premiums of catastrophic coverage health insurance would make it desirable, that is not always the case. Nonetheless, a lot of people buy it because they cannot afford comprehensive care, and they think catastrophic coverage health insurance will be better than no insurance at all. This is a good plan if you are generally healthy and have enough money to pay the deductible, say once a year. So for example, if you needed surgery, and you had $5000 for the deductible, then you would have to pay your $5000 before the insurance company paid anything toward your surgery costs. And remember that catastrophic coverage health insurance does not address routine medical expenses like tests, doctor visits and so on. It only addresses catastrophes.

catastrophic health coverage can be very good in combination with a standard comprehensive health plan. In this case, you can combine the two, using your basic plan to take care of your basic needs. Once you have spent up to the deductible on your catastrophic health coverage , it may kick in. that is a very good thing, because basic, comprehensive plans often do not cover expensive, long-term illnesses.

If you are considering Catastrophic Health Insurance your primary coverage, follow this option. Research it thoroughly. Make the best purchase possible. Be sure it fits your needs. Make certain your Catastrophic Health Insurance will qualify as a high deductible plan. Once you have ascertained this, attach a Health Savings Account to it using your bank or your insurance company.

With a Health Savings Account, you can save money that is earmarked for medical expenses. This would be the money you would use as your deductible. The good thing about it is that this money and its interest would be counted as a deduction at tax time. This money is tax free when used for medical purposes – that is for your deductible. By doing this you are saving money and reducing your costs on an ongoing basis.