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Catastrophic Health Insurance Coverage

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					Title:
Catastrophic Health Insurance Coverage

Word Count:
314

Summary:
A catastrophic or major medical insurance plan is a deductible and
comparatively cheaper form of health insurance with an element of
speculation to it. A deductible is the amount you pay out of your pocket
for medical expenses before the insurer pays the balance. For instance,
if your deductible is $5,000 and the hospital bill is $12,000, the
insurance company will pay only $7,000. The general rule is the higher
the deductible, the lower the premium. When you opt for this plan, you're
gambling that you will not face major medical problems in the near
future.


Keywords:
Health Insurance Coverage, Individual Health Insurance Coverage, Travel
Health Insurance Coverage, Maternity Health Insurance Coverage


Article Body:
A catastrophic or major medical insurance plan is a deductible and
comparatively cheaper form of health insurance with an element of
speculation to it. A deductible is the amount you pay out of your pocket
for medical expenses before the insurer pays the balance. For instance,
if your deductible is $5,000 and the hospital bill is $12,000, the
insurance company will pay only $7,000. The general rule is the higher
the deductible, the lower the premium. When you opt for this plan, you're
gambling that you will not face major medical problems in the near
future.

It is a calculated risk. According to one survey, the annual medical
expenses of 90% of the U.S. population are less than $2000; for 73%of the
population, it is below $500.

Two groups that normally opt for catastrophic health insurance are young
people in their twenties who are confident of their health condition, and
older men between fifty and sixty-five who are still waiting for Medicare
eligibility.

Catastrophic health insurance coverage is only meant to protect against
major hospital charges and not routine medical expenses. It normally does
not cover maternity care, doctor’s visits and prescription drugs. Certain
pre-existing medical conditions and cases involving mental health and
substance abuse are usually excluded from the coverage. A catastrophic
health insurance policy can be purchased as an individual plan or as part
of a group plan. In fact, there appears to be a trend among employers to
encourage employees to opt for this type of medical cover. The maximum
lifetime limit could be as high as $3 million.
Rates vary according to where you live and your age. In certain states,
the saving on premiums could be two-thirds. For example, a 21 year old,
non-smoking female may pay as little as $30 per month as a premium.

It is advisable to seek professional guidance from insurance companies
and/or agents and compare quotes before making a decision.

				
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posted:11/3/2011
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