What is Catastrophic Individual Health Insurance?
Catastrophic individual health insurance is a type of health coverage designed primarily for low-cost protection against severe health events. This plan is often chosen by younger individuals or those who prefer minimal monthly premiums while still wanting a safety net for unexpected medical expenses.
Typically, catastrophic plans have low monthly premiums and a high deductible. This means that the insured pays less each month but will face higher out-of-pocket costs when they seek medical care. These plans cover essential health benefits like emergency services, hospitalization, and preventive services, but they may require the policyholder to pay the full costs of services until the deductible is met.
An essential feature of catastrophic plans is that they are often the last line of defense in the event of severe illness or accidents. After the deductible has been met, the plan usually covers a large percentage of medical expenses, shielding the policyholder from excessive costs associated with major health issues.
It's important to note that catastrophic plans have specific eligibility requirements and may not be available to everyone. They are also often paired with Health Savings Accounts (HSAs) to help individuals save for medical expenses. When considering this type of insurance, it is crucial to evaluate one’s health needs and financial situation to determine if it is the right coverage option.