What Is a Catastrophic Health Plan in Health Insurance?
<lingo>One form of health insurance under the Affordable Care Act is called catastrophic health. This type of health insurance plan has a high deductible, which means you will pay a significantly higher amount out-of-pocket initially. It is designed for men and women who are under the age of 30 as well as others who qualify for what the government considered hardship exemptions from having to carry health insurance. This type of insurance provides limited coverage in the worst situations where a medical emergency may cost thousands of dollars.</lingo>
Catastrophic Health Plan Clearly and Briefly Explained
A catastrophic health insurance plan provides a range of benefits to policyholders. It does meet all of the requirements for a basic plan under the Affordable Care Act. This includes providing you with coverage for medications, emergency services, wellness care, and mental health services, among others. However, what makes it different is the deductible. Because the deductible is set high, you will pay for many of the costs of these health care services on your own initially. It only provides coverage once you reach that deductible.
There are some instances in which the plan still pays for your health care. For example, you do not have to pay for up to three primary health care visits each year. Additionally, all of the free preventative health screenings you are required to have access to under the Affordable Care Act are also covered.
<twitter>One form of health insurance under the Affordable Care Act is called catastrophic health. This type of health insurance plan has a high deductible, which means you will pay a significantly higher amount out-of-pocket initially.</twitter>
Why would you choose a plan that has such a high deductible? The key benefit of a catastrophic health insurance plan is that it is less expensive to pay for on a month-to-month basis. If you are relatively healthy and you do not visit the doctor often, this type of health insurance can be more effective for you, as long as you can afford to pay for your needs out-of-pocket. When there is a significant event, the policy can help to cover those larger costs, after the deductible is met, and helps you to ensure you have some financial protection from very high medical costs in these instances.
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