2009 3 Nov

How Good Is A Catastrophic Health Insurance Plan ?

Although there are many health insurance plans available, Catastrophic Health Insurance policies meet the specific needs against calamities.

Basically these plans are of two types: the comprehensive plans and the supplementary plans. The Comprehensive Catastrophic Health Insurance mostly| in most of the cases covers the conventional health care also health care services in emergency like cost of ambulance, whereas the Supplement Insurance Cover takes care of requirements such as psychiatric treatment and nursing care etc. Under both these insurance covers, after the deductibles are paid, the sole responsibility of the major portion of the medical expenses of the insurer’s treatment is borne by the insurance provider.

Merits and Demerits :
The Catastrophic Health Insurance is most practical in case of tragedy as it will compensate for the major amount of medical costs that you are in likelihood of facing in your life-time . The advantage of this insurance cover is that it has a low premium as compared to the conventional health insurance policies. General health policies do not compensate for relatively minor expenses of consultation fees of the doctors. In case you are blessed with good health and are not dependent on the doctor’s prescription, Catastrophic Health Insurance is suitable for you to save the money on your health insurance cover. Also, if you are diagnosed for any serious health issue and can afford some increase in the insurance premium, Catastrophic Health Insurance most suitable for you.

If you are already suffering from some diseases like diabetes, heart problem, AIDS or multiple sclerosis the drawback with the Catastrophic Health Insurance is that it will not cover any expenses on these ailments. disadvantage of Catastrophic Health Insurance is that, it does not cover the cost of certain diseases like, cardiac problems, diabetes, AIDS etc. Moreover , these insurance plans do not reimburse any compensation for the preventive care on any disease. You will have to meet all expenses for the routine treatment of these ailments from you own pocket such as payment of the doctor’s fees or medicines. Also, the Catastrophic Health Insurance will not pay you anything unless your deductible is completed.

If you cannot spend alarge sum of money on the medical expenses, this plan is not suitable for you.

These Catastrophic Health Insurance plans will is beneficial those people who want from lower premium amount and get large yearly insurance deductibles. This can range between $500 to $5,000. Also, the normal cover plan has a cap, which ranges from 1 million USD to 3 million USD, which a person can claim his the complete lifetime. The insurance policy is canceled when the cap amount is touched.

To put it in a straightforward manner, Catastrophic Health Insurance policy is a typeof an alternative economic security in difficult times rather than being only a health care plan. You are also eligible to get an appropriate tax rebate under Health Savings Account (HSA), if you opt for Catastrophic Health Insurance plan.

This insurance is works best for the people with secured monthly earnings. Before opting for a Catastrophic Health Insurance policy make sure that you find out the premium that has to be paid yearly and you should have that specific amount of money ready with you.