Catastrophic Health Insurance Coverages

May 29, 2010 - PRLog -- Catastrophic health insurance as the name suggests is meant for the potential catastrophes of life. It is a kind of health insurance that is in place to pay for large expenses and charges that can relate to an unexpected injury, illness, accident or surgery. Also sometimes referred to as major medical insurance, this type of insurance pays for major medical and hospital expenses but does not cover such things as prescription drugs, visits to a physician or care for pregnant women. Most catastrophic plans cover surgeries, hospital stays, intensive care, x-rays and other types of hospital fees.

Catastrophic health insurance plans often come with high deductibles and not a lot of extra features beyond what were described in the previous paragraph. That is what makes these plans affordable for so many people. This type of health insurance plan is well suited to a person who is basically healthy but wants that extra little bit of protection just in case. Catastrophic insurance provides the security you desire against the fear that something unfortunate and unforeseen could happen to your health.

This type of health insurance is one of the cheapest of all kinds of health insurance due to the high deductible. The deductible is the amount of money you as the policy holder must pay on a claim before the company will pitch in and pay. Most deductibles for catastrophic health insurance start at the minimum of $500 and go to a maximum of $5,000 or more. The majority of catastrophic plans come with a lifetime maximum benefit which is called a cap. This cap is generally in the area of one to three million dollars. The way it works is that once you reach the cap of your policy you are no longer eligible for insurance benefits and your policy will be canceled at this point.

Be aware that if you have a pre-existing health condition when you apply for catastrophic health coverage that your application may be declined. Examples of pre-existing conditions that might be affected by this include AIDS, cancer, emphysema, heart disease, diabetes and multiple sclerosis.

Applying for a catastrophic health insurance plan may be appropriate for you if you are a relatively healthy individual who does not get sick often and rarely needs to see a doctor. It also may be suitable for you if you take few if any prescription medications and if you wish to save as much money as possible on your health insurance coverage. It also may be the right choice for you if you have retired and are not yet eligible to apply for Medicare benefits.

http://www.economywatch.com/insurance/health-insurance/ca...

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