Catastrophic Health Insurance in Texas
The most common way Texans get insurance is through a group plan sponsored by their employers. Unfortunately, those who are self-employed, between jobs or not covered by an employer may find it difficult to find affordable health insurance.
The state of Texas has worked diligently to create several affordable programs that can help the low-income and uninsured residents. With all of these options available, your family could be covered by an affordable health insurance plan in no time.
Catastrophic Health Insurance or HDHP
A way for Texans to gain affordable health insurance is to purchase catastrophic health insurance or a high deductible health plan (HDHP). Catastrophic health insurance is less expensive than traditional insurance because you typically pay out of pocket for doctor visits, prescriptions, and pregnancy care until your “deductible has been met”.
A deductible is the amount of money you must pay out of pocket first, before the insurance company will begin paying for claims. The premium or monthly payment is the amount of money the insurance company charges you to insure you. Your premiums do not count toward your deductible or your out-of-pocket maximum.
Deductibles for a catastrophic health plan can range from $1,100 for an individual policyholder to $6000 policy for a family. Depending on your policy and coverage, deductibles could go higher. People who choose this policy should be sure that they have enough money set aside in order to pay their deductible if necessary. If you think you won’t need to use your insurance that often, then it could be worthwhile to set high deductibles. In order to offset the higher out of pocket expense, you can open an HSA -Health Savings Account- funded with pretax dollars and give you tax saving advantages.
An individual can open an HSA with a high-deductible health insurance plan if they are not covered under another health insurance policy and they are not enrolled in Medicare. A Health Saving Account can be combined with accident, cancer, dental, hospital protection, or vision care insurance. The funds in the HSA are used to pay for eligible medical expenses until the amount of the annual deductible is met.
Annual contribution limits for an HSA are set by the government. The limit for 2012 is $3,100 for an individual and $6,250 for family coverage. HSA account holder 55 years of age or older can contribute an additional $1,000 to their HSA each year.
Who is an Ideal Candidate for a High Deductible Health Plan?
People who choose this policy are generally healthy and do not require regular medical attention but want a safety net in case of emergency.The two primary groups of people who buy catastrophic health insurance are young adults in their 20s and adults between the ages of 50 and 64.
- Young adults usually purchase this type of health insurance because they are either self employed or are employed but do not receive sufficient health insurance coverage from their employers. This is also popular with college students who are not covered under their parent’s insurance.
- Older adults usually purchase catastrophic health insurance to protect themselves and limit their financial liability in case they suffer a heart attack, stroke, are diagnosed with cancer, etc. They are usually rather healthy to begin with and do not require regular doctor visits or prescriptions.
Consider Your Options
If you are looking for affordable health care in Texas, carefully look at your options. Always
get several quotes online when considering health insurance or any insurance for that matter. You will receive free, no obligation insurance quotes from leading providers in Texas.
If you are a good candidate for catastrophic health insurance in Texas, you will save money each year compared to a more traditional health plan. You will have a safety net in the event a catastrophic illness or accident.