Catastrophic health insurance is a type of medical coverage under the Affordable Care Act. This health plan has high-deductible and usually for people under 30. They are designed to protect you in a worst-case scenario. Catastrophic health plans cover the same minimum health benefits as other health plans, including preventive services, emergency services, prescription drugs, and more. There monthly plan premiums are usually lower, but have a higher out of pocket expense until you reach the plan’s annual deductible which can be a couple thousands of dollars.
The deductible doesn't apply to all benefits it covers three annual primary care visits and free preventive services including screening and immunizations, even if you haven't met your yearly deductible yet.
Catastrophic health coverage is different from accident, critical illness, or short-term plans; these types of coverage tend to protect the policyholder in specific, limited situations. Catastrophic plans cover the same essential health benefits as major medical plans once you've met the yearly deductible.
To enroll in a catastrophic health plan, you must meet one of the eligibility requirements, under the age of 30 or qualify for hardship exemption.
A catastrophic plan may be right for you if:
· You want lower premiums or can't afford more expensive coverage.
· You are generally healthy and rarely see the doctor.
· You don't mind having high out-of-pocket costs.
· You want to be prepared against high medical bills in a "worst-case scenario."
· You don't qualify for Medicaid.
· You don't qualify for a subsidy based on your income. Or, you do qualify, but don't mind forgoing your right to those savings (remember, you can't get premium tax credits or out-of-pocket subsidies with a catastrophic plan).
Every situation is different, and you'll have to carefully consider your health needs, budget, and priorities to determine what's best for you. Call Cosmo to if you have any questions or want to enroll in health insurance.
Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance.
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