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