Catastrophic Health Insurance/High Deductible Health Plans

Catastrophic health insurance, also known as a high deductible health plan (HDHP) is one of many health insurance options. In fact, if you have a health savings account (HSA) you may be required to have a high deductible health plan. If you are considering purchasing one of these insurance plans, read the information in this article and consider the pros and cons.

What is an HDHP?

High deductible health plans may appeal to you because they usually have very low premiums, which is the amount of money you will need to pay regularly. However, they compensate for this with very high deductibles, which is the amount of money you need to pay out of pocket for medical treatment.

They are known as catastrophic health insurance plans because people who hold them generally only want health coverage in case of a medical emergency. The ideal candidate for an HDHP is someone who does not need frequent medical care or take prescription drugs on a regular basis. HPDPs allow people in this situation to pay low premiums while still having a safety net in case of a serious illness or injury.

Potential Downfalls

If you are considering a high deductible health plan, you need to make sure you have a way to pay the deductibles. The low end of catastrophic health insurance deductibles is usually around $1,000, but your plan’s deductible could be several times that. If you do not have the means to pay for a few thousand dollars’ worth of health care out of pocket, this may not be the plan for you.

Contact Us

To learn more about catastrophic health insurance and other Texas health insurance options, contact Option 1 Health Insurance today.