Catastrophic health insurance can be an excellent money-saving solution to high health insurance costs. Here’s the “why” and “how” of it:The Basic IdeaCatastrophic health insurance plans cover major, catastrophic expenses, but not the day-to-day expenses such as routine office visits. Because of this, they are much more affordable than traditional health plans that offer “bells and whistles.”PopularityThe idea of paying for the day-to-day stuff out of your own pocket and only insuring for major expenses became popular with the introduction of qualified high deductible health plans and health savings accounts in December of 2003. Ever since, with healthcare costs continually on the rise, they’ve become ever increasingly more popular.More Benefits Than Monthly SavingsIn addition to significantly lower premiums, many catastrophic health insurance plans offer tax benefits. In fact, it’s employment laws uk possible to pay for most of your health, dental, and vision expenses with pre-tax money, giving you even additional savings.Find a “Qualified” PlanTo make sure you have access to these valuable tax benefits, be certain that the plan you are considering is “qualified” by the IRS to be used with a health savings account. The plan must be qualified in order to reap the tax benefits and open an HSA (health savings account).Who Can Benefit From These Plans?Catastrophic health insurance plans work best for individuals or families who don’t over-utilize their benefits, are relatively healthy with no chronic conditions, and don’t have multiple expensive medications.Take the Next StepIf you or your family fit the description above, I invite you to continue to explore this money-saving solution by learning more about catastrophic health insurance and requesting a free quote while you’re there.
