Comprehensive vs Catastrophic Health Insurance

(Author: Steve Klein | Article Views: 8 | Word Count: 476 | Published: Sep 11th 2008)

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Deciding if Catastrophic Health Insurance is Right for You

If you are looking for a way to save some money on health insurance, you might want to consider obtaining a catastrophic health insurance plan. At the same time, while a catastrophic health insurance plan can save money, it is not necessarily the best choice for everyone. Therefore, you should carefully weigh the pros and cons of this type of health insurance coverage in order to determine if it is right for you.

What is Catastrophic Health Insurance?

Catastrophic health insurance, which is also referred to as major medical health insurance, is a form of insurance that primarily covers the expenses associated with major medical events. Therefore, you will usually be expected to pay for your doctor’s visits and prescription drugs out of your own pocket, but you will receive coverage if you are admitted to the hospital or if you experience any major medical expense. Items that are generally covered with catastrophic health insurance include:

Diagnostics
Hospital stays
Intensive care
Lab tests
Surgery
X-rays

Since catastrophic health insurance only covers major medical expenses, your monthly premiums can be kept much lower than what you would pay for comprehensive health insurance coverage. In addition, the deductibles tend to be much higher with this form of health insurance coverage.

Who Should Consider Carrying Catastrophic Health Insurance?

Since catastrophic health insurance does not help pay for routine medical costs or prescription drugs, anyone with ongoing health problems that require medical care should not purchase this type of health insurance coverage.

The ideal candidates for this type of insurance coverage are usually those that are in their 20s as well as those that are between the ages of 50 and 65. This because young adults often do not have coverage through their employer’s and cannot afford to pay for comprehensive coverage. In addition, they tend to be in good general health and only need to have coverage in case of a major medical event, like an accident. Those between the ages of 50 and 65, on the other hand, may be retired and interested in having insurance to cover them in case of a serious health issue, such as coming down with cancer or having a heart attack.

When determining whether or not catastrophic health insurance is right for you, you should consider your budget, your health and your ability to cover the cost of high deductibles if you should develop a serious health condition.

Remember a major med plan can save you money in the short run, but there are often holes in the coverage which, if you're unlucky can end up costing you big in the end.

Discuss all options with your health insurance agent.

About the Author

Steve Klein is known as Mr. Health Insurance of Maryland. He is an independent agent, answerable to no one particular insurance company and thus able to offer whichever carrier and policy is most appropriate to meet the needs and budget of his clients. His mission , agency and Web Site are devoted to finding the best, most affordable policies available to Maryland residents.

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