Catastrophic Health Insurance

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Want to know the secret to having quality coverage at an affordable price?

"Everyday" Benefits Come at a High Cost

Many Americans are stuck in the trap of paying for coverage that has benefits for everyday expenses like office visits, prescriptions, and minor accidents. Unfortunately these policies have high premiums, and in turn, double digit annual rate increases. These policies cause two large problems;

1. People overuse their benefits because they feel they deserve them, due to the premiums they have paid the insurance company.
2. Insurance companies pay high reimbursement fees to providers in order to compete. Doctors, hospitals, and care centers accept much lower payments if you are a cash paying patient.

Both of these things largely affect the rapid increase in your health insurance premiums. The answer? Pay in cash and don't overuse your benefits. Of course most people don't want to pay in cash for everything. So it's important to have catastrophic health insurance coverage for the major expenses. Luckily catastrophic plans don't cost much.

Trading in your high cost "bells and whistles" insurance plan for a catastrophic plan, with a higher deductible, helps you in many ways:

1. It allows you to negotiate lower cash prices for many medical services.
2. It motivates people to use their coverage only as much as they need it.
3. It makes consumers question what test their doctor is recommending.
4. It makes consumers question why a doctor is prescribing a brand name prescription rather than the much more affordable generic.
5. It allows consumers to pay for most of their medical, dental, and vision expenses with pretax money. This only works if your health plan is a "qualified high deductible health plan" that allows you to open a health savings account.

All of these things lead to much lower costs for the individuals and families in your "health insurance group." On top of lower premiums, your annual rate increases for catastrophic plans are much lower than traditional plans, because the percentage increases are based on lower premiums to begin with.

It makes sense to do a comparison between your current plan and a catastrophic health insurance plan, to find out if it's a more affordable option for you or your family.

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