Catastrophic Plans
Insurance for big medical events is considered Catastrophic health insurance, also sometimes called major medical insurance. Generally, it’s for people who either don’t go to the doctor often or aren’t concerned about paying for minor health care expenses out-of-pocket as they come up.
A Catastrophic Plan May Be for You if ...
- You don’t go to the doctor often
- You can pay for minor health care expenses out-of-pocket
- You want to save on monthly premiums
To Apply, You Must Qualify
You’re under age 30.
OR
- You’ve completed a Hardship Exemption Application to find out if you’re eligible, including whether minimal essential coverage is affordable.
Examples of Covered Major Medical Events
- Heart Attack
- Cancer
- Trauma
- Hospitalization
- Surgery
How a Catastrophic Insurance Plan Might Work
Suppose you're a person who rarely visits the doctor and can pay for routine medical bills, such as an ear infection or blood pressure check. You purchase a Catastrophic plan that has a deductible and 20% coinsurance amount. This means that after your deductible is met, you pay 20% of covered medical bills and the insurance company for your plan pays 80%.
Unfortunately, you have an accident that requires surgery, an extended hospital stay and rehabilitation. These services can cost thousands of dollars and are likely much more than your deductible. In this scenario, you would just pay your deductible and then 20% of the covered expenses until you reach your coinsurance out-of-pocket maximum.
It's a "just in case" type of coverage, so be sure to check the details of any catastrophic plan before you apply.
More Coverage to Help When the Unexpected Happens
Critical illness insurance and accident insurance are two types of supplemental insurance that may come in handy when you face unexpected medical expenses.
Critical illness insurance can help you financially after a covered illness diagnosis.
Accident insurance helps pay for covered services resulting from accidental injuries.
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