- What Is Catastrophic Health Insurance?
- Understanding Deductibles
- How To Buy?
Simran is an insurance expert with more than 4 years of experience in the industry. An expert with previous experience in BFSI, Ed-tech, and insurance, she proactively helps her readers stay on par with all the latest Insurance industry developments.
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Catastrophic Health Insurance
Catastrophe health insurance is affordable health insurance that provides medical expense coverage for preventive healthcare and emergencies. Typically, a catastrophe health plan comes with low premiums but the highest deductibles and out-of-pocket expenses. This health insurance is available to individuals under age 30 who are granted a hardship exemption.
A catastrophe health insurance covers you for abrupt and unforeseen health care expenses. It helps you tackle bills that are too expensive to pay out of pocket. Let us explore more about catastrophe health insurance.
Understanding Deductibles In Health Insurance
Deductibles are the costs the insurance holder pays out of pocket. In simple words, your health insurer will pay the claim amount if it exceeds the deductible limit.
Benefits of Catastrophe Health Insurance
- Affordability:
Young and healthy people who don’t require frequent checkups or might not require routine medical care. Catastrophic plans make health insurance available to a wider audience by providing health insurance at lower costs. - Financial protection:
Catastrophic insurance’s main goal is to shield the consumer from financial ruin in the event of a serious medical emergency. It guarantees that people won’t have to shoulder all of their medical expenses by themselves. - Preventive services:
Apart from having high deductibles, catastrophic plans frequently cover important preventive services like vaccination and screening without requiring policyholders to first meet their deductibles. - Network flexibility:
A reference may not be required when using catastrophic plans to see any doctor if they are not in any network.
What Is Covered?
The following medical expenses are covered under catastrophe health insurance
- Hospitalization cover (surgery and overnight stay as per the policy)
- OPD care without being admitted
- Maternity and newborn baby care
- Mental health care
- Prescription medicines cover
- Wellness benefits
- Pediatric care including vision and oral care expenses
Features of Catastrophe Health Insurance
- Targeted at the young and healthy:
Generally speaking, catastrophic health insurance is designed for healthy people under the age of 30. It offers financial security in the event of severe illness or accident. - High deductibles:
Plans with catastrophic health insurance have high deductibles just like those with general catastrophic insurance. prior to receiving benefits policyholder must pay a small portion of their medical cost out of pocket. - Limited coverage for routine care:
Regular medical costs like medical visits, and prescription medication are prevented care is not covered by these plans. They are primarily designed to guard against significant medical costs like medical stays. - Affordable premiums:
In terms of monthly premiums cost, catastrophic health insurance plans are renowned for being affordable, making them a desirable choice for young people who want to maintain insurance coverage without breaking the bank.
Who Qualifies For Catastrophe Health Insurance?
If you are under 30 years of age or qualify for a financial hardship exemption. An exemption signifies that you are financially incapable of affording health insurance due to reasons like bankruptcy, homelessness, or others.
You can qualify to buy catastrophe health insurance on 2 grounds namely - personal hardships or affordability exemptions. Some common hardship qualifications include:
- Homelessness
- Domestic violence
- Bankruptcy
- A natural calamity like fire, floods, etc. resulting in property damage
A lot of insurance providers offer catastrophe health insurance plans. You can enquire about the same with your health insurance provider. Another way is to visit the government’s healthcare marketplace in your state.
How To Buy Catastrophe Health Insurance?
You can buy catastrophe health insurance by following the steps:
- Filling out an application form and submitting it at the exchange
- You can find forms easily at healthcare.gov
- Once you register you will receive a notification in your email confirming if you qualify for the exemption.
Final Word
Medical emergencies can knock on your door uninvited. Investing in a comprehensive and robust health insurance plan is your best bet against such expenses. Investigating the best health insurance plans in the market will help you sustain the fight against consistently rising healthcare expenses. To protect yourself and your family from such catastrophic events, connect with our insurance advisors for personalized insurance solutions.
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Catastrophic Health Insurance: FAQs
1. What are the benefits of catastrophic coverage?
A phase of coverage called catastrophic coverage is intended to shield from having to pay extremely high out-of-pocket expenses for prescription medications. It typically starts after you have spent a certain sum on your medical care.
2. What are Catastrophic plans in medical billing?
High out-of-pocket medical costs are financially protected by catastrophic health plans thereby safeguarding one& 039;s savings. These offer extensive coverage, taking care of things like hospital-related expenses routine checkups and emergency medical costs.
3. Are catastrophic health insurance plans expensive?
No, catastrophic health plans usually have very high deductibles and low monthly premiums. Preventive care and at least three annual premium care visits are free of cost-sharing.
4. Where can we purchase a catastrophic health plan in India?
You can purchase a plan directly from the website or from a licensed broker.
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Written By: Simran Kaur Vij
Simran is an insurance expert with more than 4 years of experience in the industry. An expert with previous experience in BFSI, Ed-tech, and insurance, she proactively helps her readers stay on par with all the latest Insurance industry developments.
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