Why Catastrophic Medical Plans Could Save You A Fortune On Monthly Premiums

Medical treatment for serious illness or accident can cost many thousands of dollars and with the new health care reforms nearly everyone in the U.S. is now required to have health insurance. Premiums can be costly and Catastrophic Medical Plans offer lower premiums in exchange for higher deductibles.

Eligibility

These plans are be suitable for people who can’t get or don’t want Medicaid, are under 30 years old or those over 30 and meet the hardship exemption.

They are designed to cover you in the worse case scenario, if for example you have a medical emergency.

How they work

Under this plan, you pay for all your medical expenses up to the amount of the annual deductible. After that, the insurer should pick up your medical bills, subject to any exemptions. Some will cover 100% of your medical bills and others may only pay a share, such as 80%. When you reach a specified out of pocket maximum, they will then pay 100%.

What they cover

These plans generally offer the same essential health cover as other plans, including emergency services, prescription drugs and more. Qualified preventative care, such as screenings and immunizations are not subject to the deductible, and three health care visits per year is also fully covered.

Suitability

Catastrophic Healthcare may be suitable for you if you want lower premiums, can’t afford more expensive coverage and don’t mind having high out-of-pocket costs. If you are generally healthy, don’t qualify for Medicaid or for a subsidy based on your income, and want to be covered in a ‘worst case scenario’, then this policy might be the answer.