9,700 Reasons to Get a Catastrophic Health Policy

Photo of Health insurance formThe total cost for all hospital stays in the United States in 2010 were $375.9 billion, and the average cost per stay was $9,700, according to a statistical brief released in 2013 by the Healthcare Cost and Utilization Project.

Of the 20 most expensive conditions to treat, septicemia (also known as “sepsis,” a condition where the body has a severe response to bacteria or other germs) tops the list, and has been the fastest rising percentage change since 1997.

If you’ve been searching for an affordable way to make sure you are prepared for a serious health condition, major medical insurance coverage may be what you need, reports our partners at Trusted Choice.

Also known as catastrophic insurance, this coverage can be an excellent emergency safety net. There are key coverage differences between major medical and health insurance, so it’s important that you fully understand the policy you are considering and know that it meets your needs before you purchase.

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Who Can Benefit from Major Medical Insurance?

  • A person who is self-employed
  • A person who is healthy but on a budget
  • People who are seeking supplemental coverage
  • Someone concerned only with emergency coverage
  • Someone whose employer doesn’t offer health insurance
  • An early retiree who doesn’t qualify for Medicare

What Does Major Medical Insurance Cover?

You will find that most major medical insurance companies offer plans that cover catastrophic circumstances, like hospital stays and large medical expenses.

You may also hear this plan referred to as a “hospital-only” plan or short term major medical insurance. Some major medical insurance carriers may include preventive care but other major medical insurance providers may not provide prescription drug coverage or immunizations.

If you purchase a major medical insurance policy, you may be eligible to use a health savings account, also known as an HSA. For many people, this provides a method to pay for the healthcare expenses that aren’t covered by a major medical policy.

There are a few important details to understand. For example, you cannot use your HSA funds to pay your health insurance premiums unless you’re unemployed. You’re responsible for contributions to the HSA, but any money left in the account accrues tax free interest.

While major medical insurance quotes might be appealing because they are lower cost than a health insurance plan, don’t sacrifice preventive care if that’s important to you.

How Much Does Major Medical Insurance Cost?

All catastrophic health insurance quotes include a high deductible, which keeps your premiums affordable. Deductibles can be anywhere from $250 to $5,000.

Until your deductible is met, you’re responsible for medical costs not covered in your policy, so it’s important to take that into consideration when comparing catastrophic health insurance quotes.

Catastrophic health insurance companies provide premiums as low as $30 per month and as high as $300 per month. The rate you pay will be based on several different variables, including the coverage plan and deductible you choose, and your overall health.

Comparing plans can be time consuming, but one of our Trusted Choice agents can simplify the process and provide several major medical insurance quotes that match your needs.

The “Pros” of a Major Medical Insurance Policy:

  • Emergency coverage
  • No lifetime limits
  • Possible preventive care coverage
  • Affordable premiums
  • HSAs can grow without being taxed

The “Cons” of a Major Medical Insurance Policy:

  • High deductibles
  • May not quality for HSA pairing
  • Limited coverage
  • Out of pockets costs

Searching for the right health insurance involves weighing your pros and cons, and also taking stock of your options. It’s a good idea to start researching rate quotes for major medical insurance policies with reputable, local insurers that can provide you the services you need at a cost that makes sense for your bottom line.

It’s highly recommended that you seek out at least three rate quotes before you buy, to make sure you’re getting all your options in front of you before you commit.

Our independent agents are available to help you get the information you need to make decisions about which health insurance coverage is best for you.

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