Catastrophic health care Insurance

Catastrophic health care insurance is coming into it's own these days as more and more people are struggling to pay their health insurance premiums. The recession, the decrease in bonuses, lay offs and the increasing costs of health care, together create a combination that is enough to scare the stoutest American. In turmoil, people seek ways and means to consider options that they might not have looked at before.

For example, many healthy families are beginning to wonder why they are paying for health insurance that covers some really unlikely situations. And the payment takes place not just once or twice, but every single month. In addition, they end up paying much more for coverage that includes a plethora of regular checkups and tests that an average health family simply does not need.

Studies show that the major expenditure on health care takes place on expensive procedures and treatments, and not on regular visits to physicians for minor ailments. Why then, are we paying so much for something we do not need? Why not take coverage only when it is needed? In other words, why not go back to the original purpose for which health insurance was created - to protect you from disasters. Enter catastrophic health care insurance.

Overview of Catastrophic health care insurance

The idea of paying for health insurance only to cover extreme contingencies and not regular checkups, has been formalized by the government under what is called the High Deductible Health Plan (HDHP). The plan means that individuals who are covered under this scheme pay all out of pocket expenses for health care upto a certain limit that is reasonably high. After this limit, insurance kicks in and takes care of the bills. In return for this high deductible, insurance companies charge a much lower insurance premium per month, causing substantial monthly savings. In fact, it is the complete opposite of the Mini Med Plans.

But there's much more to it than that. Individuals who opt for catastrophic health care insurance are allowed to open what is called a Health Savings Account (HSA) into which they are allowed to salt away money to cover for potential expenses till they reach the allowed high deductible. The benefit of the HSA is that any money invested into it is tax free! Any unused balance in the HSA is treated just like a retirement account that can be made use of after the age of 65.

Benefits of catastrophic health care insurance

The pros of taking on catastrophic health care insurance are many. First of all, you are charged lower amounts per month resulting in substantial cost savings on a periodic basis. Secondly, you can put away money that you would normally pay as health insurance premiums into an HSA that will go towards your retirement in case the feared catastrophe doesn't occur. Finally, you are still fully covered in case a serious accident does happen, the treatment of which will be well beyond your financial capability.

Contact us to help you compare the various catastrophic health care insurance plans. Use them to make fair apples to apples comparisons to find the best plan for you and your family.

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Michael Horvat is a health insurance expert and broker with HealthQuotes.com in Colorado Springs, CO. If you are searching for Colorado health insurance plans or quotes, please give Michael a call anytime at 800-345-0789.

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