| So your employer in Dallas, Houston or any | | | | |
| place in Texas doesn't offer health | | | | Older adults who buy this kind of policy are |
| insurance. Perhaps you can't afford to pay | | | | concerned with financial losses associated |
| for a health plan. Or maybe you just don't | | | | with heart attacks, cancer or other serious |
| want pay for health coverage because you're | | | | illnesses. They're generally healthy, have |
| healthy enough that you feel "you don't need | | | | very few or no prescriptions, and would |
| it." If you fall into any of these | | | | prefer to pay out of pocket for office visits |
| categories, you may be a candidate for a | | | | to save on premiums. |
| "catastrophic" health insurance plan, or what | | | | |
| is sometimes called a "high deductible" | | | | Catastrophic health plans can be purchased as |
| health plan (HDHP). | | | | an individual health insurance plan, as well |
| | | | as through employer group plans. Companies |
| Catastrophic health insurance is usually | | | | with 1,000 or more employees typically offer |
| characterized by its high deductibles and low | | | | higher deductible plan options. Retirees, who |
| monthly premiums. These plans typically cover | | | | aren't yet eligible for Medicare, also often |
| major hospital and medical expenses only | | | | choose catastrophic plans to reduce their |
| above a certain deductible. This means you | | | | premiums. |
| are likely to pay out-of-pocket for most | | | | |
| everything else, like routine doctor visits | | | | Certain pre-existing conditions will make you |
| and many, if not all, prescription drugs. | | | | ineligible for a catastrophic health plan in |
| | | | the individual health plan market. Health |
| The many catastrophic health insurance plans | | | | conditions such as AIDS, diabetes, emphysema, |
| offered these days cover expenses for | | | | heart disease, multiple sclerosis, and |
| hospital stays, surgery, intensive care, | | | | schizophrenia, as well as some other serious |
| diagnostic X-ray and lab tests. | | | | illness, are red flags to insurances |
| | | | companies and can prevent you from being |
| When choosing this kind of plan, your | | | | underwritten for a catastrophic plan. While |
| deductible may start at $1,000 a month or | | | | serious impairments like these will |
| higher. Along with the high deductibles, many | | | | disqualify someone from a high- deductible |
| catastrophic health plans have high lifetime | | | | plan, that it is much easier for someone with |
| maximum benefit payments, or caps, which can | | | | mild impairments to get a high deductible |
| be between $1 million and $5 million. Once | | | | plan - particularly the very high deductible |
| you reach your cap, the insurance company | | | | plans - than a low deductible plan. |
| won't pay for any additional medical expenses | | | | |
| and your coverage is terminated. | | | | Like many other health insurance plans, you |
| | | | can purchase different levels of catastrophic |
| By selecting a high-deductible plan, it's | | | | coverage depending on what type of |
| expected you'll pay for your medical needs | | | | high-deductible plan is chosen. |
| until your expenses exceed your deductible. | | | | |
| For example, with a $15,000 deductible and | | | | Before purchasing a catastrophic health plan, |
| surgery that costs $5,000, you would pay for | | | | you need to consider: |
| the surgery entirely. You should also be | | | | |
| aware that the deductible limit for a | | | | How much is the premium, and do you pay |
| high-deductible health plan, which is | | | | monthly, quarterly, annually? |
| qualified as a Health Savings Account (HSA) | | | | |
| is $5,000 in 2007 (unless you are age 55 or | | | | How much is the deductible? |
| older). | | | | |
| | | | How much of a deductible can you afford? |
| If you decide to pursue a catastrophic health | | | | |
| insurance plan, you should also know that | | | | How extensive is the coverage? |
| most of them do not cover most of the costs | | | | |
| of pregnancy care. So if pregnancy is a | | | | Do you need prescription medications? |
| possibility, make sure to check if pregnancy | | | | |
| coverage is available with your plan. Some | | | | Are your own doctor's office visits |
| catastrophic plans don't cover maternity care | | | | affordable? |
| for a full year after your effective date. | | | | |
| | | | Do you have any pre-existing conditions? |
| People who buy catastrophic health insurance | | | | |
| tend to fall into two groups: young adults in | | | | Do you get sick often? |
| their 20's and older adults ages 50 to 65. | | | | |
| Young adults who buy catastrophic coverage | | | | What's the annual and lifetime coverage |
| are usually self-employed or have no coverage | | | | limit? |
| through their employers. | | | | |