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.
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.
Initially, it may seem that these low premiums that can be enjoyed with Catastrophic Health Insurance would make it something you would want. However, that is not always true. Be that as it may, many people buy it since they cannot afford comprehensive insurance. They may believe Catastrophic Health Insurance is better than none. This may be true if you are in good general health and have the money you will need to pay the deductible, when necessary. So if you needed surgery, you would have to have the $5000 for the deductible. And you would have to pay that $5000 before your insurance company would pay anything for your surgery. Bear in mind the fact that Catastrophic Health Insurance doesnt address standard medical expenses like doctor visits, tests, etcetera. It is only good for 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 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.
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.
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.
Initially, it may seem that these low premiums that can be enjoyed with Catastrophic Health Insurance would make it something you would want. However, that is not always true. Be that as it may, many people buy it since they cannot afford comprehensive insurance. They may believe Catastrophic Health Insurance is better than none. This may be true if you are in good general health and have the money you will need to pay the deductible, when necessary. So if you needed surgery, you would have to have the $5000 for the deductible. And you would have to pay that $5000 before your insurance company would pay anything for your surgery. Bear in mind the fact that Catastrophic Health Insurance doesnt address standard medical expenses like doctor visits, tests, etcetera. It is only good for 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 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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