Wednesday, November 9, 2011

Major Medical Health Insurance

Major medical healthinsurance, also referred to as a "catastrophic" plan, is just one of the many options when it comes to health-insurance policies. If you dislike the plan offered by your employer, or if your employer does not offer healthinsurance, major medical may be the best option to fit your needs.

These types of plans are nicknames "catastrophic" for a reason. They are typically designed to cover medical issues that are generally considered to be significant- and expensive. Generally characterized by high deductibles and low premiums, major medical healthinsurance is best for only certain populations of people.

Anyone with a chronic medical condition that requires regular check-ups, tests, and medication should steer clear of this type of policy. While pre-existing conditions may indeed by covered, any costs outside of a major incident will have to be paid out-of-pocket. Most of these types of policies cover only hospital stays, surgeries, intensive care, and related lab and other diagnostic tests.

In addition to the fact that this type of insurance simply does not make financial sense for someone with pre-existing conditions, past years have shown to be extremely difficult to be accepted for such a plan. Due to health care reform, in 2014 health-insurance companies will not be legally permitted to deny coverage to anyone based on their health status.

Deductibles for major medical healthinsurance policies generally range from $500 to $10,000, depending on the benefits included in this type of plan and the actual coverage offered. Premiums are relatively low. For example, a 21-year-old female may be offered a plan with a $500 deductible, with a $2500 annual out-of-pocket limit, for just $29 per month.

There are two major groups of consumers that tend to purchase this type of health insurance quotes, those that are in their 20s and from 50 to 65. Young adults that purchase this type of policy often are either self-employed or lack coverage from their employer, and are unable to afford more coverage at this time in life. However, individuals in this age range may now stay on their parents' policy until the age of 26 if they are not offered insurance from their employer.

Older individuals that look to this type of healthinsurance policy often are concerned with the potential financial losses of a catastrophic even. Often they are relatively healthy, without the necessity of taking many prescription medications or frequent physician visits. In this case, the out-of-pocket expenses of the occasional primary care physician visit and resulting medication needs are significantly less than the cost of a comprehensive healthinsurance policy.

Major medical healthinsurance certainly has its benefits and drawbacks, so as with any important decision, take care in comparing the options before making an educated decision.

By: Kavin Stone
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