Catastrophic health insurance plans or High Deductible Health Plans (HDHPs), as it is commonly known, were made to lessen medical costs. It provides a lower monthly premium in return for a higher annual health insurance deductible. With the help of this, you pay for almost all medical care until you attain the annual deductible amount.

High deductible health plans

Under this plan, you will have to pay out-of-pocket for most medical bills until the annual deductible amount is reached. In case of catastrophic health plan, though you will have to pay co-insurance, it will cover most of the medical expenditure. If your catastrophic health plan is entitled to a Health Savings Account (HSA), you can employ the HSA funds for the payment of the deductible and out-of-pocket expenditure. Even if you don’t use an HSA, it would be a smart move to save some money in every month to pay for future medical costs.

If you are self-employed, you can think of self-employed medical insurance. You can go through the following tips to know which self-employed health insurance coverage suits within your budget.

• The easiest method to get a good health insurance even after you leave your job is to maintain the same coverage under the COBRA (Consolidated Omnibus Budget Reconciliation Act) of 1986. According to the rule of this act, you can continue with your present coverage after leaving your job for up to 18 months at group rates.
• If you have the freedom of planning even after leaving your job, go for the least expensive health insurance plan which was offered by your company during the open enrollment period. By this means, you will get a self-employed health insurance premium at a cheaper rate to cover under the act of COBRA.