Compare Individual Catastropic Health Insurance Plans

Consumer-driven programs like catastrophic health insurance plans shift some of the burden, and some of the risk, from the insurance company to the individual policy holder. In exchange for a lower monthly premium, participants in a catastrophic health insurance plan, sometimes called a high deductible health plan, agree to pay more up front in the form of a higher deductible, copays and other out-of-pocket costs. Choosing the right catastrophic health insurance plan can save you money and let you take charge of your own health care spending.

Instructions

• 1

  Obtain as many quotes for catastrophic health insurance plans as you can. If your employer offers a high deductible plan, include that plan in your comparison as well. Visit comparison websites like eHealthInsurance.com and the website of the National Association of Health Underwriters at NAHU.org. Enter your ZIP code into the form and contact the health insurance agents listed.

• 2

  Create a checklist that includes the monthly cost of the premiums for each catastrophic health care plan as well as the required deductible, copayments and maximum out of pocket costs. Getting the maximum out of pocket costs is particularly important, since some catastrophic plans require a 10 to 20 percent copay after the initial deductible is met. Those plans, however, do have an annual out of pocket maximum.

• 3

  Add up the total possible costs for each catastrophic coverage plan and make sure that amount fits your budget. For instance, if you choose a catastrophic health care plan with a $5,000 deductible and 20 percent copay to a maximum of $3,000 more, you could be on the hook for a total of $8,000 in out of pocket costs. Be sure that the premium savings justify this additional risk and that you can afford to pay those medical bills if you do need catastrophic care.

• 4

  Log on to the website of each company you are considering and make sure the providers you use participate in their network. According to the Office of Personnel Management, with a high deductible plan, all your health care spending counts toward your deductible. By choosing in-network providers you can enhance the value of the plan and reduce your out of pocket costs.

• 5

  Ask if the plan you are considering is HSA-eligible. An HSA, or health savings account, allows you to put money aside to pay medical costs not covered by your health plan, so you can use those HSA funds to pay your deductible costs and other expenses. The money invested in the HSA can be deducted from your taxes, saving you money and letting you build a nest egg you can draw on to pay those high out of pocket costs.