Family Health Insurance
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26
Hospitalization Only Insurance Vs. Catastrophic Insurance
September 26, 2009 | 6 Comments
Some strategies on finding affordable health insurance.
I’ve been a health insurance agent since 1985. I help Connecticut residents find health insurance and have for the last several years have also managed a website that helps people in other states find medical and hospital policies online.
Over the years I have changed my mind about hospitalization only insurance. These health insurance policies have significant limitations that are not found in the typical health insurance plan. I tend now to help my clients who express an interest in hospital only policies find catastrophic health insurance providers. High deductible or catastrophic medical insurance policies are also low in cost, but have fewer drawbacks.
Why I don’t like hospitalization only insurance:
Hospital stays are getting shorter and shorter. However, people are not necessarily healing any more quickly. The medical care that years ago, you might have received in the hospital during the last day or two of your stay is today care that you are likely to receive outside of the hospital. This care is not likely to be covered. A hospitalization only health insurance plan may cover the hospital stay, usually not the medical care that takes place outside of the hospital.
X-rays, lab work, MRIs, etc. often take place outside of a hospital. These can be expensive and may not be covered by a hospitalization only insurance policy.
A long-term illness may require years of doctors visits, none of which are likely to be covered by a hospitalization only insurance policy.
People buy hospitalization only insurance policies to save money. Saving money is of course a good thing. However if it was the only thing we’d all buy the least expensive car and wear the least expensive clothes.
If you need to keep your costs for health insurance lower, I recommend searching for medical and hospital policies online or elsewhere and looking for a catastrophic or high deductible policy that covers you both in the doctor’s office and in the hospital. In my opinion, a catastrophic health insurance policy that has a $2,000 deductible, but covers you in the doctor’s office and the hospital is a better deal than a hospitalization only policy that has a $1,000 deductible even if they cost the same.
Hospitalization only insurance is like a bullet-proof vest that is only bullet-proof in the front. Catastrophic health insurance may be a better option. If you need to save money, go for a higher deductible medical insurance policy that is “bullet-proof” on both sides.
Good Luck,
Alston J. Balkcom
This article can be copied and reprinted but only in its entirety and with the links intact. The article was originally published on https://lovetherates.com/articles/hospitalization-only-insurance-article.htm. The article starts with the heading “Hospitalization Only Insurance” and ends with this sentence.
Alston Ballkcom
http://www.articlesbase.com/finance-articles/hospitalization-only-insurance-vs-catastrophic-insurance-130024.html
Comments
6 Comments so far
Does anyone know where I can get catastrophic health insurance at?
I am thinking about switching from my major medical health insurance plan to my employers limited benefit health insurance plan in order to save money. I would like to have a catastrophic health insurance plan to cover hospitalizations. Does anyone know where I could get such a plan rather cheaply?
After looking around and comparing prices I am going to stick with my major medical plan. One company offered me a major medical plan with a $5000 deductable for $90 a month and that was the cheapest one. My current policy is only $170 and I have an out of pocket max of $6500. So I might as well keep it.
If you’re asking for a high deductible health plan (HDHP), see an insurance broker that handles individual plans.
References :
healthplans.my-age.net – here is my health insurance plan. As I remember they can provide such a service.
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its good to contact a health insurance broker. there you will get the all. otherwise you might be get caught with some questions.
References :
http://www.beealive.com
Rather cheaply, means about half the going rate for a low/no deductible plan.
If you’re looking for $25 a month, it doesn’t exist.
You need to talk to a local health insurance broker, who can help you out with this . . . but I’ll tell you, the new carrier will exclude coverage for any preexisting conditions, and unless you’re under 30 and healthy, the new policy will cost MORE than the plan through your employer.
References :
Don’t. Stick with major medical coverage. A limited benefit policy is like telling your car insurance company that you want to be covered if you hit a tree, but not if you hit a deer…even if it costs the same to repair the car.
Doing it with health insurance doesn’t make sense either. If you want to save money cover all conditions and scenarios and up your deductible. If your employer isn’t paying at least half of your insurance then you shouldn’t be getting it through work anyway.
Try the comparison on my site and you’ll see what I mean. I requires no personal information to use.
Oh, and just up your deductible if you want to cut cost (at least to something that makes sense). Use a broker to help you determine the best course of action. A good one will let you know when the work coverage IS actually better.
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