You should know right now that not everyone can get catastrophic coverage. If you happen to have a pre-existing condition such as AIDS, diabetes, heart disease, or cancer you will not be eligible and your application will be rejected.
Should your application be approved, you will most likely have to pay $500 worth of deductibles initially and this will get higher later on. Keep in mind that if you do decide to get catastrophic coverage, you better have money set aside to cover the deductible amount.
One other thing you should know about catastrophic coverage is that most of them have a lifetime payment cap of $1 million to $3 million.
Aside from private insurance companies that offer the catastrophic coverage, the government also offers it. Such a program is covered under the Catastrophic Coverage Act of 1988.
What it does is expand the current Medicare Program making it more comprehensive. Unfortunately, it does not yet cover chronic care. One of the big changes from the current framework is that it provides substantial relief from spousal impoverishment and greater opportunities for preserving the assets of the elderly.
This took effect a year later and under the new policy, it also includes hospital coverage for as many days as required with the payment of one annual deductible amount between $564 and $580 in 1989 as well as coverage for up to 150 days per year in a skilled nursing facility without the requirement of prior hospitalization and with copayments required for only the first eight days of care. Two years later, prescription drugs were also included.
A catastrophe of significant magnitude can happen at any time. No one knew that Hurricane Katrina would hurt the southern states with another enormous hurricane the year after. Such an example just goes to show how important this kind of coverage really is.
It allows people who have lost so much to somehow rebuild their lives and if you don’t think you need one, try looking at other high deductible and low premium plans. You can even compare these with what is included under catastrophic coverage before you decide to sign up for the future.