No more catastrophic health insurance

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January 1, 2016 by Tony Novak

Today I was asked “I have been looking over the (health insurance) options listed (on the exchange) and don’t see what I am looking for. In  the past was able to find catastrophic insurance for emergencies only, is this something like that is still available?”

True catastrophic health insurance disappeared from the market after implementation of the Affordable Care Act (ACA). One of the principles of ACA market reform was to limit out-of-pocket financial risk of insurance policies to government-specified amounts.

But the reality is that nobody should really miss it. The incremental premium savings of taking policy deductibles above$10,000 was so small that there was almost no real value in these catastrophic policies. Today’s health insurance policies allow deductibles up to the current dollar amount allowed for Health Savings Account plans.

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