Should a person purchase catastrophic health insurance? If so, what is the best age? Company?

Question

Should a person purchase catastrophic health insurance? If so, what is the best age? Company?

Answer 1

What do YOU mean by catastrophic Health Insurance?  

Technically Catastrophic is a category of  Major Medical plans that does not start coverage until you have paid a large deductible like 10,000 to 50,000 thousand dollars.  Usually such a plan requires you to either have a separate policy in place that covers the most or all of the deductible or a Health Savings Account where you are putting extra money aside to cover the deductible.  

Since Catastrophic covers only IF some thing catastrophic happens then the premiums are low unlike traditional Major Medical which have high premiums.  

If you are comfortable with the high deductible - Yes get it!  

As a recommendation if you or a member of your immediate family have a college degree check with the alumni association to see if there is a Catastrophic coverage available through them premiums could be as low as $100/YEAR.

I've been an Agent for three years.  I don't sell Catastrophic or Major Medical Coverage and never have It's Great stuff if you can afford the deductible and/or premium and of course are healthy.  I can't get it so I won't sell it.

Answer 2

Do You Fit The Profile?

On the average, people who buy catastrophic health plans are either in their 20's, or between the ages of 50 to 65. Young adults tend to buy the coverage if they are self-employed or don't get coverage through work. On the other end of the spectrum, older adults purchase a catastrophic health insurance plan when they are concerned with financial losses in the event of a heart attack, cancer or other serious illness. They tend to be healthier, on few or no prescription medicines, and are more concerned with saving on their premiums, and would rather pay out-of-pocket for doctor's visits.

High deductible health insurance can be purchased either as a single plan or through an employer in a group plan. If you have certain pre-existing conditions, you often won't be eligible for a catastrophic health plan. Examples of such conditions are AIDS, diabetes, emphysema, heart disease, multiple sclerosis, schizophrenia, and many more.

What Does It Cover?

The types of coverage vary depending on what type of high-deductible health insurance plan you choose. Blue Cross Blue Shield of Florida offers a catastrophic health insurance plan in most counties that is called "Essential." It has deductible of $250 and an out-of-pocket limit of $2,500 after you've exceeded your deductible. The lifetime maximum is $1 million. The plan covers hospital, surgical, and X-ray expenses, but not other services, like doctor's visits, maternity care, prescription drugs, and mental health visits. An online quote showed that the monthly premium for a 21-year old, nonsmoking female to be $29.

A similar plan to Florida's Essential health plan is offered by Golden Rule Insurance Co. Its "Basic Plan" offers a high deductible health insurance plan, with deductible prices ranging from $500-$5000. It covers the same elements that the Essential plan does, but mental health and substance abuse are not covered. The Basic Plan does, however, cover hospital and surgical expenses, MRIs, CAT scans, and more, as well as having a lifetime maximum of $3 million.

Shopping Tips

Before buying a catastrophic health insurance plan, consider:

    * What is the cost of the premium per month, quarter, and year?

    * What is the cost of the deductible and how much can you afford?

    * How extensive do you want the coverage to be?

    * Do you require prescription medications?

    * Can you afford to pay for doctor visits out-of-pocket?

    * Do you have any pre-existing conditions?

    * Do you get sick often?

    * What is the lifetime annual benefit?

If you are interested in getting a health insurance coverage quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class health insurance providers - helping find the best health insurance coverage for you.

Answer 3

Yes, you need major medical insurance. That is the same as catastrophic health insurance. Skip the doctor's office co-pay option. It only adds to the monthly premium. You are basically pre-paying for visits you may not need. Dental insurance is usually a ripoff. The best age is as soon as you are born. A major medical problem can occur at anytime and you need insurance before this happens. You cannot wait until you need insurance to buy it. You will be declined for pre-existing conditions. Also, with insurance, you will receive better care at better facilities and will be more apt to seek the care you need.

As for the company, that depends on your area. In the US all insurance companies have different charters for each state. If you move to a different state, you need to buy other insurance for that state. Some companies will allow you to switch to another state in which they are doing business without going through a new underwriting process.  Beware the company with the blue cross logo does not. It is very important to read before you buy and research average costs of medical care. Most every company has several different plans and many with limitations on coverage, such as drug, chemo, radiation, preventative care . Do not depend on an agent giving you all the limitations of each plan. Do the research yourself.

DO NOT buy limited-pay insurance such as Mega Life, United American (UA),  Mid-West, or any company associated with NASE (National Association for the Self-Employed). Check Ripoff Report.com for any of these companies and you will see all the reasons against them.

Answer 4

By pure definition of "catastrophic" I'd say no, but it depends on how you're defining it.  You should never buy a plan that limits your benefits.  Go with a comprehensive plan and if you want to lower the cost of it you can just raise the deductible.  So in other words you're better off with a higher dedectible comprehensive plan than a lower deductible "catastrophic" plan.

Again catastrophic is usually just adding benefit to an existing plan, but people use that term loosely so it depends on what you mean.

Consider an HSA as well.  As far as companies that depends on where you live.  Never be without health insurance.

Jeff

Answer 5

What people in the health insurance industry usually mean when they refer to “catastrophic health insurance” is a high-deductible health insurance plan that is purchased not so much to cover your average doctor’s visit but for serious illnesses or injuries, especially those requiring hospitalization.

Is this what you’re referring to?  Or did you have in mind something like Long-Term Care insurance?  Or diagnosis-specific coverage, like cancer insurance, or something like that?

I wouldn’t be able to help you with the last two, but if you’re actually asking about health insurance – then now’s the time.  It’s never a good idea to go without coverage, no matter how young and healthy you are.  A single injury or illness, for example, could send you into bankruptcy.  If you don’t have health insurance through an employer and can’t afford a more robust health insurance plan on your own, then you may want to consider a high-deductible health insurance plan – possibly even an HSA-eligible plan, which can provide you with special tax advantages and a long-term savings tool.

To learn more about your health insurance options and about HSA-eligible health insurance plans, talk to a licensed agent.  Or, visit an online agency like eHealthInsurance.com (I work there) where you can review free quotes from a broad selection of health insurance plans, make detailed comparisons, and apply for coverage with the plan that’s right for you.  You can also talk to one of our licensed agents at 1-800-977-8860.

Hope that helps!

Amir M, licensed agent

Answer 6

Not enough info.  Do you mean instead of traditional health insurance, or in addition to?  

There's no one size fits all answer, anyway.  You should discuss this with a local agent.

Answer 7

Yes, If you are healthy. Take the money you save and put it in an HSA. The younger you are the better. As to the company - email me.

Don

http://mtnhealthinsurance.com