Picking the right type of health insurance is important. By making the right decision, you can substantially reduce your health care costs.
Is catastrophic health insurance right for you? Maybe it is. But before deciding, it’s important to understand exactly what catastrophic coverage is, what it covers and who it works best for.
Catastrophic health care plans are designed to pay for the larger types of medical claims, such as hospital visits and related expenses, emergency room charges and ongoing inpatient and outpatient treatment. Typically, expenses associated with hospital stays are also covered under these types of plans. Some of these expenses include professional costs paid to physicians, nurses and surgeons along with anesthesia-related charges.
But perhaps most importantly, it’s imperative to know and understand what type of medical expenses are NOT covered when you have a high-deductible policy. Coverages that you normally take for granted and previously only paid a low copay for, may not be covered.
Physician office visits (and specialist visits) are usually your responsibility to pay with this type of coverage. The average cost of an office visit can vary, but typically, the charge from the doctor would be approximately $60-$120, assuming it is a simple symptomatic visit for a fly, virus or similar condition. Naturally, any x-rays or lab tests would increase your out-of-pocket cost.
Cheap medical insurance plans also rarely cover prescriptions. Although a discount may apply to the cost, the cost reduction is usually very nominal…perhaps 5%-20%. It is possible that generic prescriptions would be covered, although the copay may actually be higher than the cost of the medication. In the event of a major ongoing illness that requires monthly non-formulary prescriptions, the cost could be quite high.
The principal advantage of high-deductible plans is cost savings. For a typical family of four, the annual savings of purchasing a major medical policy can be as much as $3000- $10,000 per year, depending on the deductibles and state where the family resides. In many cases, this savings is substantially more than the out of pocket costs for benefits that are not included in coverage.
Of course, this savings could quickly erode with a series of unexpected non-generic prescriptions and unanticipated but ongoing health care expenses. For that reason, sometimes a high-deductible policy, that offers 80%-100% payment of expense after the deductible, should be considered. Although the rate will be higher than a catastrophic plan, it will still cost quite a bit less than a comprehensive medical plan.
If health conditions are not an issue, you can always apply to change from an existing plan to another policy that better fits your current needs. As the size and makeup of a family changes (and sometimes job situation), the need for health insurance may also change.
Should You Change Your Health Insurance Policy?
Should you change your health insurance policy? If you can save money and keep the same benefits and current conditions are covered, it might be a good option to consider.
Low Cost Medical Plans For Individuals In Ohio
Low cost medical plans in Ohio are available to individuals. Top-rated websites can offer great rates for individuals in the Buckeye state.
How To Pay The Lowest Cost For Your Insurance
Pay the lowest cost for your insurance by working with the right person and shopping online for the lowest insurance rates. Here's how!
