Catastrophic Health Insurance Plans

Catastrophic Health Insurance Plans

Photo by: William Stitt / Unsplash


Catastrophic health insurance coverage reduces rates by covering major medical expenses at extremely affordable premiums. Most large health insurers such as Blue Cross, Aetna, UnitedHealthCare, Cigna and Assurant offer this type of coverage for their individual and family plans. Also, short-term temporary plans tend to feature catastrophic benefits instead of routine medical expenses.

Typically, catastrophic health insurance policies provide coverage for inpatient and outpatient hospital expenses, emergency room charges, anesthesia, X-rays and lab tests, surgical expenses and professional fees of doctors, surgeons and other medical providers. Occidentally, preventive benefits will be provided. However, most catastrophic plans do not pay for office visit and prescriptions. Occasionally, limited office visit benefits may be covered, but a deductible will probably apply.

A "High Deductible Health Plan" (HDHP) is another form of catastrophic coverage. An HDHP is an inexpensive health care plan that typically does not pay for the first several thousand dollars of medical expenses. However, after those expenses have been paid (your deductible), the policy pays 80% -100% of remaining expenses. HDHP plans are required if you are going to open up a Health Savings Account (HSA). However, you are also able to take out an HDHP without using the HSA feature.

HSAs are affordable alternatives to traditional health care designed to use tax-deductible funds to pay for…


Source by Ed Harris