Health insurance can be very expensive and millions of Americans are uninsured. The monthly premium payments are simply too expensive for a lot of people to budget for. If you are a healthy person that does not visit the doctor on a regular basis but you would still like coverage in case of a serious illness or injury, catastrophic health insurance could be a perfect solution.
A catastrophic health plan is also known as a high deductible plan. With this type of plan most medical costs would be paid out of pocket because the deductible is so high. But if you rarely visit the doctor that won't be an issue. These types of plans are meant to protect people from being financially devastated in the event of an accident, serious illness, or injury.
If you can couple your catastrophic health plan with a health savings account or HSA, this could help you pay for the occasional medical costs not covered by your high deductible plan. An HSA is a savings account in which pretax dollars are deposited. The funds in this account can be used to pay for medical expenses and withdrawals for medical expenses are not subject to federal income tax. You are effectively paying for your medical costs with tax-free dollars.
For someone with a chronic illness or a nagging injury that needs to visit the doctor on a regular basis a more traditional health plan would be required. For someone who is generally healthy and just wants to have coverage to pay for major medical expenses, a catastrophic health insurance plan coupled with a health savings account is a great option.
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