5 Ways to Save with a Catastrophic Plan
Rent, internet bill, car payment and now you want me to pay how much for health insurance every month? These days it can feel like your paycheck is almost gone before you hit the grocery store or bar.
The good news is you have more health insurance choices today than your parents did. And if you’re under the age of 30, you can get what’s known as a Catastrophic Plan, the most wallet-friendly of all wallet-friendly health plans.
Built for healthy youngsters like you, a Catastrophic Plan typically has the lowest price tag and offers the simplest health benefits, covering you in case you get in an accident or sick. Friday’s Catastrophic Plan gives you even greater value with three free doctor visits for additional peace of mind.
We know health insurance can get confusing, so we’ve cut through the insurance lingo and summed up how you can save money with a Catastrophic Plan. See five simple ways to save below.
1) Get a safety net, not a catch-all
When you’re under 30, you really don’t need a fancy-schmancy health plan. If you don’t have a chronic illness, only see the doctor a handful of times a year, and have minimal generic prescriptions, it doesn’t make sense to have the Tesla of health insurance plans.
The wallet-friendly Catastrophic Plan is designed as a safety net. With a lower premium and essential healthcare benefits, it covers what you need most, and protects your wallet in case of an unexpected emergency, so you can keep living life to the fullest without emptying your bank account.
2) Find a Catastrophic Plan that has great benefits BEFORE you hit your deductible
If you’re getting a Catastrophic Plan, you’ll have a lower premium (what you pay each month) with a higher deductible (what you need to spend before your insurance pays for part or all of your medical care).
Don’t plan on hitting your deductible? Be sure to get health benefits that your insurance pays for before you reach your deductible
Before you pick your plan, think about which health services you’ll actually use in the upcoming year. (Think: filling a prescription for birth control, or a doctor visit for that sinus infection you always seem to get). Then, review the health plan options to see if any of these services are covered before your deductible kicks in.
Our Catastrophic Plan, for example, offers 3 free primary care visits, $0 preventive ACA drugs (like birth control and vaccines), and a free annual wellness visit and eye exam — before you hit your deductible.
Key takeaway: Think about the healthcare benefits you get before hitting your deductible when picking a Catastrophic Plan.
3) Have kids? Consider a child-only Catastrophic Plan even if you have insurance through work
A child-only plan is a health insurance policy where no parent or guardian is covered and the policyholder is 18-years-old or younger. The child (or children) is the only one on the health plan.
Often, mom and dad are on a health plan from work that either won’t cover children or would cost a lot of money to do so. In this case, a child-only Catastrophic Plan could be a great, wallet-friendly health insurance solution, saving the family money and covering kids with a simple health plan.
And with three free doctor visits per child, you’ll be getting great value for services you know you’ll likely use.
4) See if you can score financial assistance
Financial aid for health insurance, otherwise known as a federal subsidy, is a type of financial assistance that can lower your monthly premium or reduce your out-of-pocket medical costs. The Advanced Premium Tax Credit lowers your monthly payment while a Cost-Sharing Reduction subsidy helps lower the cost of deductibles, coinsurance, and copays.
Whether you qualify for subsidies or cost-share reduction depends on your income, family size, and the cost of health insurance in your area. Many individuals qualify for financial assistance if their annual income is less than $47,000. A family of four that makes up to $97,000 annually is also likely to qualify.
5) Going uninsured is risky business — don’t risk a catastrophe
Do you think since you haven’t been to the doctor in years and don’t have any prescriptions, it’s smarter to just skip insurance altogether? Helpful Hint: it’s not smarter.
You’re leaving yourself open for financial catastrophe. Without health insurance, a car accident or major unexpected illness can turn into bankruptcy in a matter of weeks.
Every day you’ll need to worry about avoiding injury or illness—forget carefree skiing, travel, dance parties, bike rides, or commuting with germy passengers. That’s a heavy burden to bear, not to mention the cost of getting treated if you do crash or get sick.
Get a Catastrophic Plan at the very least, or risk saving a dime to spend a dollar (or a few thousand).
We know that health insurance can be tricky, so if you have any questions this enrollment season, feel free to give us a call: 844-451-4444. We’re happy to help!
-The Friday Team