Catastrophic Health Insurance

By: EconomyWatch Content   Date: 2 February 2010

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Being medically insured has its own advantages. One can rely on coverage to take care of the financial liabilities that an ailment can cause. However, when money is tight and you are at your prime of health, the closest to being medically covered and not pay much premium is catastrophic health insurance.

Also known as high-deductible insurance, catastrophic health insurance has its share of advantages, as well as disadvantages. Though, they are economical on the pocket, they offer medical coverage only once the sum total of the total deductibles are paid. As this takes a longer time with smaller premium, a real catastrophe may find catastrophic health insurance ineffectual.

High Deductibles and Catastrophic Health Insurance

Deductible is the amount of money one needs to give before the insurance company offers complete coverage. In 2009, the US government measured high-deductible insurances to be having deductibles of $1,1810 to $5,800.

Catastrophic health insurance, depending on the nature of coverage it offers, comes with different deductibles. Comprehensive health insurance charges more, as it offers larger coverage, including ambulance rides or emergency room charges.

A supplemental catastrophic health insurance offers, as the name suggest, a supplementing coverage to the existing insurances and expenses such as nursing care and psychiatric care. However in both the cases, the deductibles need to be paid in full before the insurance company covers the expenses. Consumers should remember that elective procedures such as a voluntary overall check up are not covered.

Catastrophic Health Insurance, Pre-existing Diseases and the Cap

As with all the medical coverage, catastrophic health insurance too comes with a cap that falls between $1 million and $5 million. Once you reach the limit, the cover ceases to exist and the policy is cancelled. To get further coverage, one needs to start a new insurance policy.

As per the law, no body can be denied an insurance coverage; however there might be delays in getting coverage for pre-existing condition such as diabetes or mental health disorders. Also, if one is not eligible for an individual plan, one can still get catastrophic health insurance through group plans.


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