By Catastrophic insurance plans are in some way comprehensive coverage. But this time, it is only available to people under 30, those facing major financial problems and issues of homelessness and perhaps cannot afford any other health insurance.
Mainly offered by private insurance groups, Catastrophic health insurance plans seem counterintuitive for low-income individuals due to its high deductibles. This makes the beneficial impact and the core purpose of establishing catastrophic insurance for the poor and needy debatable. You have to reach the deductible before the health plan pays all your healthcare services.
Let explore two primary ways in which the Catastrophic insurance plans are counterintuitive
The flagship of Some coverage is better than none VS Limited coverage
Although Catastrophic insurance plans provide basic protection from financial ruin due to unexpected medical events, it doesn’t cover essential services like prescription drugs, maternity care, or mental health treatment. So you still have to spend more out of pocket on these services while still having an almost equivalent comprehensive insurance policy.
Affordability VS High Deductibles
The very plan which aims to bring comfortability and accessibility with Lower premiums to the needy who can’t afford a more comprehensive plan eventually contributes to bringing financial hardship for low-income individuals. High Deductibles means one has to pay more out of pocket for medical and health care before the plan actually starts to pay for you.
Because Catastrophic plans have no subsidies or tax credits, it leads to low enrollment where few people; most healthy and younger individuals patronizing it Basically, it attracts those who are healthy, young, and have limited financial resources.
The Centers for Medicare & Medicaid Services (CMS)’s 2022 report depicted that only about 1.4% of total insurance Marketplace enrollment Accounted for catastrophic plan. This suggests that while catastrophic insurance provides some benefits, it may not be the most effective solution for the poor and needy.
So what can be the other options instead of Catastrophic plans? To mitigate this, some governments and organizations offer:
1. Subsidies or assistance programs that help with premium payments or deductible costs.
2. Community health centers also give affordable healthcare services, regardless of insurance status for all
3. Charity care programs . Programs of this sort offer free or reduced-cost care for those who can’t afford it.
Notwithstanding the limitations catastrophic insurance comes along with, it can be a stepping stone on which a more comprehensive coverage can be achievable and also provides essential protection for those who might otherwise go uninsured. At least, it cushions your basic health.
