Get 5 free quotes!

You have probably come to this site because you are a Florida resident looking for affordable health insurance. Catastrophic health insurance is an affordable option to consider.

Catastrophic or High Deductible Health Insurance
   
Catastrophic health insurance is a high deductible, low premium health insurance policy. A deductible is the amount of money you must pay out of pocket first, before the insurance company will begin paying for claims.  The premium or monthly payment is the amount of money the insurance company charges you to insure you.  Your premiums do not count toward your deductible or your out-of-pocket maximum.   

A high deductible health insurance plan (HDHP) is one with a minimum deductible of $1,100 for an individual policyholder and $2,200 for a policy that covers the whole family.  Compare this to other traditional plans that may have lower deductibles of around $500 but significantly higher premiums. Catastrophic health insurance is less expensive than traditional insurance because you typically pay out of pocket for doctor visits, prescriptions, and pregnancy care until your “deductible has been met”.

People who choose this policy should be sure that they have enough money set aside in order to pay their deductible if necessary. Under a HDHP, you pay all of your medical expenses up to the annual deductible.  After that, some plans pay 100 percent of your covered medical expenses; others pay a share of your medical bills, say 80 percent.

Who is an Ideal Candidate for a High Deductible Health Plan?

Florida residents who choose this policy are generally healthy and do not require regular medical attention but want a safety net in case of emergency.The two primary groups of people who buy catastrophic health insurance are young adults in their 20s and  older adults between the ages of 50 and 64.

Young adults usually purchase this type of health insurance because they are either self employed or are employed by others but do not receive sufficient health insurance coverage from their employers. This is also popular with college students who are not covered under their parent’s insurance policy.

Older adults usually purchase catastrophic health insurance to protect themselves and limit their financial liability in case they suffer a heart attack, stroke, cancer or other debilitating diseases.  They are usually rather healthy to begin with and do not require regular doctor visits or prescriptions.

People with  preexisting conditions (AIDS, emphysema, heart disease, diabetes, etc.) are usually not eligible for catastrophic health insurance.

The lower monthly premium might be very attractive, but if you do not have funds set aside for your higher deductible, this catastrophic health insurance might not be the best option unless you have a HSA.

Health Savings Account (HSA)

Florida residents have the option of combining their high deductible health insurance plan with a Health Savings Account (HSA).

There are several benefits to having a HSA:

• Deposits made to the HSA are tax-deductible
• Interest accumulates on a tax-free basis until they are withdrawn to pay for eligible health care expenses.
• Funds stay with you even if you leave your employer or end participation in the catastrophic insurance plan. 
• Funds roll over from year to year.
• You can invest the money accrued in your HSA, with all earnings sheltered from taxation.
• When you withdraw money for medical expenses, you do not pay taxes.
• Dental, vision, and long term care are included in qualified medical expenses.

Florida residents can open an HSA with a high-deductible health insurance plan if they are not covered under another health insurance policy including Medicare. A Health Saving Account can be combined with accident, cancer, dental, hospital protection, or vision care insurance. The funds in the HSA are used to pay for eligible expenses until the amount of the annual deductible is met.

Annual contribution limits for an HSA are set by the government. The limit for 2010 is $3,050 for an individual and $6,150 for family coverage. HSA account holder 55 years of age or older can contribute an additional $1,000 to their HSA each year.

Considerations

If you are considering a high deductible health plan, talk to a qualified insurance agent.  Make sure you understand how the plan works and what it covers.  Figure out if you can afford the deductible and how much the out-of-pocket expenses will cost you. Always get several quotes online when considering any health insurance or any insurance for that matter.

If you are a good candidate for this catastrophic insurance, you will save money each year compared to a more traditional health plan.  You will have a safety net in the event a catastrophic illness or accident.  When you inquire about this cost saving insurance, mention Major Medical because so many agents use catastrophic, Major Medical and HDHP interchangeably.

You can investigate your options for  right now by going to an insurance comparison website.  Why not get an idea of the costs right now?   It’s fast, free and there is no obligation to buy.