Know the Plans
Because Americans are so used to the idea of having coverage before they meet their deductible, it's important to know what type of plan you are buying when and if you make the switch to a catastrophic health insurance plan.
Benefits to ask about
While shopping, ask the insurance company or your agent the following questions:
- What is the lifetime maximum benefit?
- What is the annual maximum benefit?
- What is my stop loss, or the most I could spend in a year?
- Is preventive care covered before or after the deductible?
- Are accidents covered before the deductible?
- Can I use funds from my health savings account to pay for medical expenses pre-tax?
- What is the financial rating of the insurance company?
- What doctors can I see, and receive in network benefits?
- Can I get benefits for seeing a doctor who is out-of-network?
- Am I covered overseas?
- How does the plan cover me once I have met my deductible?
- What is my family deductible?
- By approximately what % does this insurer raise rates by each year?
- Does my plan include any dental coverage or discounts?
Once you have the answers to the questions above, you are well equipped to make a decision.
It's easy to find a good plan. Just know that a lot of catastrophic health insurance plans cover 100% of expenses after the deductible are tax advantaged and have high lifetime and annual maximums. There are a lot of plans with large networks and low stop loss' for the year. Make sure you don't get stuck with a plan that's skimping on the areas above, because it's simple to find a plan you will be happy with.
