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Health > Catastrophic Health Insurance

If you want to lower your health insurance costs, you can look at a "catastrophic" health plan, where you pay lower premiums in exchange for taking on a higher deductible. It's called catastrophic because it usually covers only major hospital and medical expenses, while you pay for routine visits to the doctor and prescription drugs. Most of these plans will cover expenses for hospital stays, surgery, intensive care, x-rays, and lab tests.

Choosing this type of plan usually involves a deductible of $500 or higher. Many catastrophic plans also have a high cap, usually between $1 million and $3 million. If you reach the cap, your policy is voided and you will not be eligible for any further coverage with that plan.

Most catastrophic plans do not cover pregnancy care, so if you are looking at getting pregnant in the future, make sure to check what kind of coverage is available.

The purchase of catastrophic health insurance is usually done by young adults in their twenties or adults between the ages of 50 and 65. The young adults are usually self-employed or aren't covered by their employers. The older age group is usually healthy and concerned with potential financial losses associated with heart attacks, cancer, and other serious illnesses. They are willing to pay out of pocked for doctor's visits if it means saving on premiums.