How to Compare Individual Catastrophic Health Insurance Plans

One way to save money on your health insurance premiums, and possibly your taxes as well, is to choose a high deductible health care plan instead of a traditional one. Also called catastrophic health insurance policies, high deductible plans are designed to provide coverage in the event of a lengthy illness or serious accident. In exchange for lower premiums, the covered party agrees to pay a high deductible, often as much as $5,000 or $10,000. After that deductible is met, the plan kicks in and starts to pay for the cost of care.

Instructions

• 1

  Gather as many of your medical bills and documents as you can. When shopping for a health care plan, it helps to know your annual health care spending, including both your out-of-pocket costs and the amount your current health insurance paid.

• 2

  Create a worksheet and use it to list the costs associated with each catastrophic health insurance plan. Make a column for the annual premium cost, the deductible, the copayments and any additional out-of-pocket costs you are subject to. Also include a column listing the annual out-of-pocket maximum for the plan. According to the Office of Personnel Management, this is the best way to compare the true cost of each plan.

• 3

  Ask if the plan is HSA eligible. Choosing a catastrophic health care coverage plan that is HSA eligible allows you to contribute money into a health savings account and deduct that money from your income taxes. According to the Office of Personnel Management, it is to your benefit to contribute as much as you can to the HSA, as every dollar you contribute can be deducted from your taxes.

• 4

  Check the preventive care benefits of each catastrophic health care plan. In most cases, the cost of preventive care is not subject to the high deductible, but it is important to determine which tests and procedures are covered and which are not.

• 5

  Contact several agents that specialize in individual health care plans. A good place to start is the website of the National Association of Health Underwriters (see Resource). Enter your ZIP code to see a list of NAHU certified agents in your area. Be sure to provide the representative with your list of priorities, as everyone's needs are different. You might be looking for a low premium and be willing to take on additional risk in return, or you might want to limit your risk by keeping your out-of-pocket costs as low as possible.