How Catastrophic Health Insurance Works Better

With health insurance costs continuing to rise, many of us are looking for new health coverage at a better price. Here’s how you can save lots of money and keep excellent major medical coverage that may be, in some ways, better than what you already have.

It’s Easier to Understand and Much Simpler All Around

The whole idea of catastrophic health insurance is that the insurance company covers you for the major stuff, and you pick up the cost of the everyday stuff. Some plans allow you to have 100% coverage after the deductible, making it much easier to know your maximum risk for the year (it’s simply your deductible amount). On top that, many plans cover your annual physical before the deductible, making a catastrophic health insurance plan one of the best solutions for maintaining your health, a low cost, and ease of use.

Tax Advantages

If you choose to go with a qualified high deductible health plan (one popular form of catastrophic health insurance) you can open a health savings account. This allows you to deposit money pre-tax into your HSA (health savings account) and pay for your medical expenses tax free. This can prove to be a big money-saver if you are in a high tax bracket. Best of all, you can deduct a lot more than just health expenses. You can deduct dental, vision, and much more.

The Premiums are Much, Much Lower

The biggest reason catastrophic health insurance plans are better than most types of insurance is the price., bottom line. Because you are taking your everyday expenses and more risk in the event of a major medical expense, most insurance companies price these plans very low. If you want to, you can deposit the money you save from getting a catastrophic plan into your HSA to pay for futuremedical expenses.

Author: Jared J. Balis
Source: ezinearticles.com