California Catastrophic Health Insurance in Helps You Meet Emergency Need
California Health Insurance Today, many California employers are offering employees a choice between comprehensive health insurance and catastrophic health insurance. There are pros and cons to both types of health coverage. Generally speaking, catastrophic health insurance may prove to be inadequate for many people. Here are a few points to consider when making the choice between comprehensive health insurance and catastrophic health insurance in California.
Comprehensive Health Insurance in California
When you choose comprehensive health insurance in California, you can be sure that your general medical needs will be met. Comprehensive health insurance usually covers regular doctor visits, trips to the emergency room, and preventative health care measures. With this type of insurance, you will pay a deductible and/or a co-pay. These are usually pretty affordable (between $250-$1000 annually) so the average person can take care of their medical needs with comprehensive health insurance.
Catastrophic Health Insurance in California
Catastrophic health insurance in California is even more affordable than comprehensive health insurance. The monthly premiums are quite low; however, the deductible may be high. Sometimes the deductible on a catastrophic health insurance policy can be as much as $1200-$5000. Additionally, catastrophic health insurance usually has a maximum payout amount of no more than three-million-dollars. If you have a catastrophe that results in severe disability, you may hit that three-million-dollar mark pretty quickly.
Essentially, if you don’t ever have a need for catastrophic health insurance but just want to have something in place, it can be extremely affordable; however, if you need to see a doctor regularly, it will not be helpful to you. Catastrophic health insurance only covers truly catastrophic events. If you are in great health and have plenty of money to pay your deductible, it’s a good thing to have; however, it won’t begin paying unless the cost of your catastrophe exceeds the amount of your deductible (which you would have to pay). So, for example, if your deductible was $1200 and you went to the emergency room with an injury that cost $1000 to attend to, your catastrophic health insurance coverage would not help you.
The best use of catastrophic health insurance coverage is in combination with a comprehensive health care plan. When you make this sort of arrangement, you can use your comprehensive health care for both everyday medical needs and emergency needs; however, if you need more coverage in the case of a severe accident, illness or injury, your catastrophic health insurance would act as a back-up and provide you with extra coverage for things your comprehensive health insurance might not cover. This is especially helpful if you choose the type of catastrophic health insurance policy that pays directly to you in the event you are hospitalized. These funds can be used at your discretion for whatever you may need.
Whether you choose a catastrophic health insurance policy, a comprehensive policy, or bots typh, it’s also a good idea to establish a health savings account. Thie of savings account can be used to save money to meet medical needs that are not covered by any kind of insurance. Additionally, you can use it to have money on hand to pay for your deductible on either type of policy. Money you keep in a health savings account and the interest it accrues are not taxed as long as you use this money for medical expenses exclusively. This sort of arrangement will help you at tax time and give you peace of mind in the event of any medical need.