Are you under 30 or have a hardship exemption? Looking for lower-cost options for health insurance? Consider catastrophic only health insurance.
What does catastrophic only insurance do?
Catastrophic insurance offers a specific type of coverage. It is intended to provide a safety net only for the worst-case emergency medical costs. Catastrophic only insurance has some advantages and disadvantages compared to other health insurance plans:
- Lower premiums than other plans
- Avoids tax penalties for not having minimum health insurance coverage required by
- Certain preventive care is covered
- Provides “worst-case scenario” coverage
- High deductibles
- Individuals must pay for routine medical care up front
- Individuals must pay their own medical bills up to the specified deductible
- Many plans pay only a portion of expenses even after meeting the deductible
What if I have an exemption?
You may be exempt from purchasing insurance if you’ve experienced financial or other hardships. Hardships might include being homeless, bankrupt, or having recently experienced a disaster or domestic violence. U.S. citizens living overseas, prisoners, or members of some religious sects might also be issued health insurance exemptions.
In this case, you would not have to purchase health insurance. But, if anything were to happen, there would be no financial safety net. All of your medical expenses would fall entirely into your budget, which can often lead to bankruptcy.
Are there other low-cost options?
Some individuals—as an alternative to getting catastrophic only insurance—can be eligible for subsidies, which reduce insurance premiums and out-of-pocket medical expenses.
To help you decide if catastrophic only health insurance is the right choice or to change your catastrophic coverage to a higher level, visit HealthMarkets. We provide free online quotes, personalized assistance 24/7 over the phone at (800) 360-1402, and licensed insurance agents nationwide.