What is Catastrophic Health Insurance?

Catastrophic health insurance is an inexpensive type of health insurance policy designed to offer coverage for major medical expenses, preventive care, and emergencies. You get a high deductible in exchange for a low premium.

 

In most cases, preventive treatment is fully covered, and up until you reach your deductible, you are only responsible for covering your portion of the medical expenses. Catastrophic health coverage can be availed by people under 30. You can get your catastrophic health insurance from the Health Insurance Exchange, or your employer can help you get it. People looking for monthly low health insurance premiums and those going through financial hardships can get the catastrophic plan. You might be able to get basic health insurance that covers essential parts for accidents or illnesses. You should understand the terms and conditions before buying the best health insurance.  If you like, you may even buy health insurance online.

 

Coverage

A catastrophic health insurance plan covers sudden emergency illnesses, unexpected injuries, and accidents once you reach the plan deductible.

 

A catastrophic health insurance plan helps you in unexpected medical emergencies when you otherwise might have to pay high medical bills you cannot afford. The plan also covers preventive services and essential health benefits. Certain types of birth control, annual check-ups, most types of vaccinations, and health screenings are covered in your catastrophic health insurance plan.

 

The catastrophic health insurance plan does not cover emergency care till the point you have not reached the deductible. There might also be some types of preventive care limits and the number of times you visit the Primary Care Provider (PCP). Most plans allow you three trips to the PCP. It depends on your plan, and it is essential that you understand the health insurance benefits and what your plan offers.

 

Features of Catastrophic Health Insurance Plan

Just like all other insurance plans, the catastrophic plan has to cover certain types of preventive services that don't cost you anything. It does not matter whether you have reached your deductible amount or not. It covers essential health benefits such as: 

 

• Hospitalisation
• Ambulatory patient services
• Emergency services
• Laboratory services
• Prescription drugs
• Paediatric services
• Rehabilitative services
• Vision or dental coverage
• Birth control
• Breastfeeding coverage
• Preventive/wellness services
• Mental health or substance abuse 
• Maternity/newborn care or pregnancy

 

Who Should Consider Buying a Catastrophic Health Insurance Plan?

People who are under 30 or are facing financial hardships (homelessness, bankruptcy, or other criterion requiring you to qualify for financial hardship) can go for this type of plan.

 

Qualifications For Financial Hardship Criterion

You get two types of exemptions that let you qualify. These are affordability exemptions and personal hardship. It depends on your specific situation, and you could qualify for either of these. A few common qualifications are: 

 

• Eviction
• Domestic violence 
• Bankruptcy
• Homelessness
• Death of a close relative
• A fire
• Human-caused disaster
• Shutting off utility services

 

Affordability exemptions mean you cannot afford to buy a regular health insurance plan or coverage. You can claim it on your tax return and get your money back if you qualify for an exemption. 

 

How to Apply for an Exemption?

You can fill out an application and submit it to apply for an exemption. The application must be submitted to the Health Insurance Exchange. Once you apply, you will be notified by mail if you are eligible or not.

 

How to Get Catastrophic Health Insurance?

A lot of insurance providers provide catastrophic health insurance plans. If you already have insurance, you can check with your provider whether they offer it or not. You can also go to the government's healthcare marketplace in your state. 

 

You must remember that out-of-pocket expenses and deductibles would probably be higher than a traditional plan. Ensure you can afford to pay the maximum out-of-pocket amount if you purchase the catastrophic plan. Like most health plans, you can buy the plan only in case of a qualifying event or an open enrolment period. 

 

Key Points to Remember

 

• You will not be qualified for subsidies or government tax breaks if you buy catastrophic health plans. 
• The catastrophic health insurance plan will cover all the essential benefits that a traditional health plan has once you reach the high deductible.
• The catastrophic health insurance plans are only available to people who are undergoing financial hardships or people under 30.
• The catastrophic health insurance plan covers a few medical expenses until you reach your high deductible and is a low-cost plan. 

 

Visit Niva Bupa and get your Catastrophic Health Insurance Plan today!