Question

What is catastrophic insurance?

Answer 1

Hi!

The correct answer would be A.

Explanation:

Catastrophic insurance falls in the category of high deductible health plans. High deductible health plans are those which involve lower monthly premiums, and this is good for you in the case that you don't have to visit the doctor often. The potential drawback of this type of insurance plan is that you have to pay for ALL the expenses (doctor's visit, emergencies and prescriptions) until you reach your annual deductible (which is very high) - a few thousand dollars. After this, the insurance policy covers you for the rest of the calendar year.

Hope this helps!