Reader question:

What is catastrophic health insurance, and who is it good for?

Grant

I’m glad you asked that.

Many people find themselves unable to afford health insurance because of the high monthly premiums, and for this reason feel hesitant to go to the hospital even in an emergency case. There are forty five million people in the United States who do not have any kind of medical health insurance. And it is absolutely necessary to have full medical health insurance so that you can get regular check ups, prescriptions, and preventive care, but we have to face the truth that some people just can’t.

So what does a person in this situation do? Well, they don’t absolutely have to get a full medical health insurance plan. If a person finds that they work for a company with no health insurance plans, is not able to afford health insurance coverage, or just doesn’t want to pony up the money for it, there is still the option for catastrophic health insurance. This is also sometimes called a major medical plan, a type of health insurance plan with a more specific focus than most.

What catastrophic health insurance is, is a type of medical health insurance plan that requires higher deductibles but at the same time, the monthly payments are a lot smaller. The catch is that it covers a whole lot less than your average medical health insurance plan. You end up paying yourself for your check ups and drugs, while the catastrophic health insurance plan will only cover major hospital visits.

Catastrophic health insurance will provide coverage for most hospital stuff, from the cost of your stay to X Rays and lab tests. If you feel that you are able to afford routine visits, but need something to fall back on for the more expensive medical situations, catastrophic health insurance is for you. It is also a good option for people who would otherwise not be able to afford any kind of health insurance.

Cheers,

Fashun Guadarrama.