Catastrophic Health Insurance in New Jersey
Health insurance costs have risen at an average rate of 12% per year since 2000. These health care costs are being passed down to companies and individuals alike. This is one of the reasons why Americans are purchasing high deductible health care plans or catastrophic health insurance more and more.
These plans seek to drive down health care costs by placing more of the responsibility and cost burden on consumers. The best way to compare costs is by getting numerous competitive quotes online.
High Deductible Health Plans
A deductible is the amount of money a person must pay out of pocket before the insurance company begins paying on a claim. A HDHP usually requires a person to pay $1000-$5000 up front, depending on the policy, in medical expenses before the insurance company will kick in. Most plans necessitate that policy holders pay for office visits, prescriptions and such until the deductible has been met. The insurance company then pays for medical expenses over and above the deductible, when you’ve been involved in a major accident or suffering from a serious illness; hence, the term “catastrophic” insurance. These HDHP’s offer health insurance and save you from financial ruin in the event of a hospital stay.
High deductibles health plans carry lower premiums. Premiums are the amount charged by the insurance company to insure you.Since the premiums for high-deductible health care plans – $1,000 or more per family member – are much less than traditional health insurance plans, the money you save can be put into a Health Savings Account.
These high deductible health plans (HDHP) are not available for direct purchase in New Jersey unless they’re paired with Health Savings Accounts (HSAs) .
If you are checking out insurance rates in New Jersey, ask about affordable options available to you. An insurance agent can give you sound advice. Also, get 5 free quotes online from an insurance comparison website. You are one simple click away from getting affordable health insurance in New Jersey.