Catastrophic Health Insurance – The Secret Solution to High Health Plan Costs

Catastrophic health insurance plans are one of the most underused health insurance solutions when it comes to rising health plan costs. Here are two BIG reasons why you should consider a catastrophic health insurance plan.

1. Catastrophic Plans Lower Your Monthly Health Plan Cost

Most simply, your deductible is higher, so the cost is much lower.

This means that you take on more responsibility in the event that you incur medical costs throughout the year. The huge advantage is, that if you stay healthy, you pocket the extra premium you would have paid on a traditional plan, instead of the insurance company adding it to their bottom line. It’s a case of “paying for coverage only if you need coverage.” Of course you will still have to pay a small premium to cover the big stuff.

2. Some Catastrophic Health Plans Come With Big Tax Benefits

Catastrophic plans that are specifically labeled as Qualified High Deductible Health Plans allow you to open a health savings account (HSA).

Once open, you can deposit money you save into your account. These deposits are tax deductible at the end of each year.

You can use the money in your HSA to pay for medical, dental, vision, and other expenses you incur each year, tax free. It’s the only tax vehicle that allows you to deposit money pre-tax and take it out tax free. This is a huge advantage, especially if you’re in a high tax bracket.

The Bottom Line

There’s a lot to know about how these plans work. But once you have one in place they are easy to use and maintain. Have a local agent explain the plans, pricing, and other details to you for free.

Author: Jared J. Balis
Source: ezinearticles.com
Find out how much money you or your family can save by taking advantage of a catastrophic health insurance plan. Request a free quote.

Or, get free tips and more information on catastrophic health plans by visiting my catastrophic health insurance page.

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