Catastrophic Health Insurance Types

When considering catastrophic health insurance there are several things you need to know. First how long will you need the coverage and what kind of coverage do you need. Also, since there are literally hundreds of providers (especially on the internet) you will need to research what providers have to offer.

Catastrophic health insurance is a low premium, high deductible health plan that covers unexpected major medical issues. This type plan usually doesn’t cover doctor visits or checkups and other everyday preventative medicine.

While there are several different types of catastrophic health insurance, many people only need this insurance for a limited amount of time. This is usually for periods of unemployment where they are no longer covered by an employer policy. This type of catastrophic insurance is called short term catastrophic health insurance.

A short term or temporary catastrophic health insurance plan can be for as little as 1 month or extend as long as 2 years. Again, these are usually very high deductable (starting at $500 and going as high as $15,000) and low premium policies. The higher the deductible normally means the premium will be lower.

These catastrophic plans usually qualify for a tax-advantaged health savings account (HSA) and funds in these accounts can be used for the policy deductibles but not the premiums. In order for the plan to qualify in 2009 the deductible must be $1150 for individuals and $2300 for families.

There are also several reasons people can be declined for short term catastrophic health insurance. Most of the time pre-existing conditions are the reason for being declined. These conditions include heart disease, HIV and other conditions that could develop into a major illness.