Catastrophic coverage health insurance is something that a lot of employers are trying to offer their employees these days instead of comprehensive coverage. There are good and bad points about both for both the employer and the employee. However, all around catastrophic coverage health insurance may not be everything that everyone hopes for. Here are a few points to consider before buying catastrophic coverage health insurance.
Comprehensive health insurance provides coverage that addresses most areas of health care. Usually includes are doctor visits, tests, emergency care and other common situations. A per incident deductible of any where from $250 to $1000 usually applies. Having these low deductibles and co-pays can help lower costs so that the average person can afford medical care.
With Catastrophic Health Insurance , you will have lower monthly premiums, but the deductible will be much higher. It can run from twelve hundred to five thousand dollars. And you will also have to deal with a maximum payout amount. This could be a million to three million dollars. Once you have hit the limit, you will have no more 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.
So if you already have some sort of basic or comprehensive medical insurance, this may be a good addition for you. Because these types of coverage usually dont cover long, expensive illness, the Catastrophic Health Insurance could be very helpful to fill in the gaps. Because it has a high deductible, your basic policy would cover your basic needs. Your Catastrophic Health Insurance would cover the unexpected.
If you are thinking about catastrophic health coverage as your main coverage, you may want to consider adding a Health Savings Account. This is a savings account that you would establish specifically for medical expenses with your high deductible being considered a medical expense. If you need to use your insurance, you would get your deductible from this account. The nicest thing about it is that this money and its interest are tax free as long as you use them only for medical expenses.
By utilizing a Health Savings Account, you will be able to save money especially for medical expenses. This money can be used as your deductible. An excellent thing about this arrangement is that the money you deposit and the interest it earns would be a deduction at tax time. This is tax free money when you use it for medical purposes. Your deductible would qualify as a medical expense. In this way you will save money and reduce your costs on a regular ongoing basis.
Comprehensive health insurance provides coverage that addresses most areas of health care. Usually includes are doctor visits, tests, emergency care and other common situations. A per incident deductible of any where from $250 to $1000 usually applies. Having these low deductibles and co-pays can help lower costs so that the average person can afford medical care.
With Catastrophic Health Insurance , you will have lower monthly premiums, but the deductible will be much higher. It can run from twelve hundred to five thousand dollars. And you will also have to deal with a maximum payout amount. This could be a million to three million dollars. Once you have hit the limit, you will have no more 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.
So if you already have some sort of basic or comprehensive medical insurance, this may be a good addition for you. Because these types of coverage usually dont cover long, expensive illness, the Catastrophic Health Insurance could be very helpful to fill in the gaps. Because it has a high deductible, your basic policy would cover your basic needs. Your Catastrophic Health Insurance would cover the unexpected.
If you are thinking about catastrophic health coverage as your main coverage, you may want to consider adding a Health Savings Account. This is a savings account that you would establish specifically for medical expenses with your high deductible being considered a medical expense. If you need to use your insurance, you would get your deductible from this account. The nicest thing about it is that this money and its interest are tax free as long as you use them only for medical expenses.
By utilizing a Health Savings Account, you will be able to save money especially for medical expenses. This money can be used as your deductible. An excellent thing about this arrangement is that the money you deposit and the interest it earns would be a deduction at tax time. This is tax free money when you use it for medical purposes. Your deductible would qualify as a medical expense. In this way you will save money and reduce your costs on a regular ongoing basis.
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