What is Catastrophic Coverage?
Catastrophic coverage is a form of insurance which is specifically designed to cover catastrophes. There are several different types of catastrophic coverage available; many are designed to supplement existing insurance coverage, ensuring that someone is covered in the event of a fire, flood, earthquake, tornado, or major accident. There is also a form of catastrophic coverage which is designed to deal with health emergencies. If you are considering catastrophic coverage, make sure to read the terms of any proposed insurance plan carefully, so that you can understand what, exactly, is covered. Home owners may purchase catastrophic coverage as a separate policy to supplement an existing insurance policy. For example, many home insurance plans do not offer benefits in the event of an earthquake, especially in earthquake-prone regions, because the risk from the insurer’s point of view is too high. Homeowners who want to be covered can purchase a separate catastrophe policy which specifica
Catastrophic coverage is special coverage for people who have extremely high drug costs. Once you or other qualified parties on your behalf have paid no more than $4,350 in 2009 for your covered drugs, you only pay a small coinsurance or copayment amount for the rest of the year. In 2009, you pay the greater of $2.40 for generic drugs (including brand drugs treated as generic) and $6.00 for all other drugs, or 5% coinsurance.
All plans offer catastrophic coverage after the combined drug costs paid by both you and Medicare in a calendar year equal $6,153. This is when Medicare begins paying approximately 95%, while your share of the costs is 5%, but always includes a minimum of $2.40 for generic drugs or $6.00 for brand name drugs.
A. Catastrophic coverage is essentially a very high deductible insurance plan. It protects your assets in the event you are severely injured or ill, and incur large hospital or other medical costs. One form of catastrophic coverage is the High Deductible Health Plan (HDHP). Apart from protecting you from high financial risk, this coverage is also required if you want to open a Health Savings Account (HSA), which carries tax benefits. Whealthcare does NOT offer catastrophic coverage. But under separate plans, SAAGII’s licensed health insurance brokers on staff will obtain catastrophic coverage or traditional health insurance through a large health insurer for your desiring employees, at the direct purchase rate. Q. How do I discontinue the service? A. If you should decide not to take advantage of SAAGII’s Whealthcare savings for your employees at some point, you can terminate enrollment as easily as when you first enrolled. Simply let us know, via email , U.S. Mail, or a phone call and
