What is catastrophic health coverage?
According to a recent UCLA Center for Health Policy Research survey, more than eight million Californians, or nearly one out of four, is uninsured. Thanks to high levels of unemployment and the recession, many may have had to choose between paying for basic needs and paying for health insurance. Unfortunately, living without health coverage can leave you and your family even more financially vulnerable in the instance of a health catastrophe. That’s where catastrophic health insurance can help.
Catastrophic insurance is designed to handle serious medical conditions, hospital bills, surgery, and major injuries. Unlike the bills for routine care and even prescription medications, bills associated with major medical events can quickly snowball and lead to financial disaster and even bankruptcy. Whether you choose not to have individual health insurance or cannot afford it, catastrophic coverage simply makes good financial sense.
It does not usually pay for office visits, prescription medications, or routine medical care. Subscribers will be responsible for a copayment, or a flat fee that is due when services are rendered. Copayments and deductibles, or the amount that must be paid before the insurance kicks in, can be large under catastrophic insurance, but the monthly premiums are often dramatically lower than with other types of insurance.
Ultimately, catastrophic insurance allows you to pay for only the care you absolutely need without unnecessary spending on care you may or may not need. It is not necessarily the right choice for every person or family. If you are self-employed, low-income, or your job does not offer group health insurance, and you are relatively healthy and do not require regular health care or monthly prescriptions, catastrophic insurance may be a good choice for you.
Talk to one of our insurance professionals to learn more about which plan may best suit your personal needs.
Study source: http://www.healthpolicy.ucla.edu/pubs/Publication.aspx?pubID=401
Source: Los Angeles Health Insurance
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