The average cost of an average catastrophic health insurance plan in 2021 is $194. That is less than the average monthly charges in an individual health insurance plan or an employer-sponsored plan. One downside to catastrophic health insurance plans is the high deductible. Catastrophic health insurance plans, deductibles, that you must pay for health services from the moment the policy kicks in, are typically much higher than most other health insurance plans. If you want to lock in the lowest rates on catastrophic health insurance in Kentucky, here are three tips that can help:
First, you should get a short-term health insurance plan with a federal poverty level of just under $12, whichever is lower. A short-term health insurance plan (shorter than one year) allows you to get health services without getting covered by Medicaid, the federal medical assistance program for the poor. According to the Kaiser Family Foundation, almost nine out of every ten individuals who qualify for Medicaid would not qualify for subsidized health care through their employer, because their incomes are too low to qualify.
Second, if you do qualify for Medicaid, you should apply for a catastrophic health insurance plan with a federal poverty level of at least $11, whichever is lower. The federal poverty level for a family of four is an income of about $20,000 per year. According to the Kaiser Family Foundation, about half of all American households would qualify for this particular exemption. If you are in a very bad health insurance situation and you don't already have health insurance, you should definitely apply for the affordable options mentioned here. These options include: the short-term Medicaid program; the Medicare Part B deductible elimination program; the major medical assistance plans offered by state health departments; and catastrophic health insurance.
Third, if you don't have health insurance, don't worry; there are still some other ways to avoid having to buy a policy that could put a huge financial strain on you. For example, you can look into the special catastrophic health insurance plans offered by some states (Indiana, California, Washington, and New Jersey among others). According to Health Care Reform and Consumer Protection Division of the Indiana Department of Insurance, these plans typically offer long-term benefits with low monthly premiums and no deductibles. According to the same study, they also provide additional coverage for individuals with pre-existing conditions and individuals who become unemployed.
According to the Center on Budget and Policy Research, a nonprofit organization that studies health policy, the best choice among catastrophic health insurance plans in the United States is catastrophic coverage through an employer. According to this study, families that own small businesses are far more likely to take advantage of this option than those who work at small firms. Moreover, it is recommended that employers offer catastrophic coverage to their employees, rather than simply covering them up. These employers usually provide this kind of coverage as part of their company benefits package. The American Association of Retired Persons says that even 20 years after retirement, many retirees find themselves not having sufficient income to meet their needs.
So what are you waiting for? Don't risk going without medical insurance coverage; look into your options now. If you are looking for information on different health insurance policies, then visit the AAFP website. There you will find a comprehensive guide with important information about health insurance plans including terms, coverage, and costs.