What Is a Catastrophic Health Plan?
A catastrophic health plan (sometimes called a Bronze catastrophic plan) is a type of health insurance plan which provides high deductible coverage. Deductibles are the amount you have to pay for covered medical costs before your insurance starts to cover them, and generally, catastrophic health plans have the lowest monthly premium of any health plan type, but you must meet a significantly high deductible prior to the insurance carrier paying any of your covered health costs.
Plans can help people with high medical expenses save money, but may not be right for everyone. It's important to carefully compare deductibles, copays, and out-of-pocket maximums before choosing a catastrophic health plan.
Benefits
There are several benefits to catastrophic health plans, including:
Lower monthly premiums: Catastrophic health plans have lower monthly premiums than other types of health plans, making them a good option for people on a budget.
Higher deductibles: Catastrophic health plans have higher deductibles than other types of health plans, which means that people who choose these plans are responsible for paying more of their medical costs out-of-pocket. However, this can also be a benefit for people who are healthy and do not expect to have many medical expenses.
Comprehensive coverage: Catastrophic health plans cover the same essential health benefits as other types of health plans, including preventive care, doctor visits, hospital stays, and prescription drugs.
Eligibility
To be eligible for a catastrophic health plan, you must be under the age of 30 or qualify for a hardship exemption. Hardship exemptions may be available for people who have low incomes, high medical expenses, or other extenuating circumstances.
How to Choose a Catastrophic Health Plan
When choosing a catastrophic health plan, it is important to compare the following factors:
Monthly premiums: The monthly premium is the amount you will pay to the insurance company each month.
Deductibles: The deductible is the amount you must pay for covered medical costs before your insurance starts to cover them.
Copayments: A copayment is a fixed amount that you pay for a covered medical service, such as a doctor visit or prescription drug.
Out-of-pocket maximums: The out-of-pocket maximum is the most you will have to pay for covered medical costs in a given year.
Network of providers: The network of providers is the group of doctors, hospitals, and other healthcare providers that are covered by the health plan.
It is also important to consider your personal health status and expected medical expenses. If you are healthy and do not expect to have many medical expenses, a catastrophic health plan may be a good option for you. However, if you have a chronic condition or expect to have a lot of medical expenses, you may want to choose a different type of health plan.