As everyone who has lived through a serious illness knows, hospitalization bills are a killer. Recent studies showed that half of all bankruptcies are due to medical expenses.

Now Local 802 is offering an inexpensive catastrophic plan that will supplement your own health insurance. The new plan will cover up to $2 million for as little as $50 a year for an individual. To qualify, you must be under 75 and you must already have the required underlying insurance coverage, including hospitalization.

In other words, this new plan cannot be used by itself. It is a supplement or backup to your own health plan, acting as a stopgap to make sure that a serious illness doesn’t wipe out you, your home, your savings, and your families’ total assets.

As with most catastrophic plans, there is a hefty deductible — $25,000. The plan is being administered by an outside group, Future Planning Associates.

The idea behind the plan is that it provides financial protection against extraordinary medical expenses not covered by your current health care insurance. This insurance picks up where your basic coverage stops should you require costly medical treatment for a serious illness or injury.

To qualify, you must already have a basic health insurance plan in place with minimum benefits at least as great as the following:

• $25,000 major medical coverage;
• Hospitalization coverage with semi-private room and board of $300 per day for 70 days;
• A $5,000 surgical schedule; and
• A lifetime maximum benefit of $1,000,000.

Local 802’s Plan A combined with Blue Cross-Blue Shield hospitalization coverage meets these minimum requirements. The minimum requirements are also met by the Blue Cross-Blue Shield HMO available through 802. The minimum requirements may also be met by other coverage you may have.

The plan provides the following supplemental benefits:

1. A maximum benefit of up to $2 million for each insured person, per benefit period.
2. A $25,000 deductible, after which it pays 100 percent of your covered medical costs.
3. Eligible expenses that are reasonable and customary can count toward meeting the deductible, including those paid for by your basic health insurance or Medicare.
4. A 12-month deductible accumulation period.
5. A benefit period of three years.
6. Coverage for costs such as hospital room and board, intensive care, private nursing, convalescent home care, ambulance service, hospice care and more.

In mid-September, every Local 802 member was mailed an application for this insurance. If you didn’t receive one, or for more information, contact Future Planning Associates at (800) 220-0000. Tell them that you are a member of Local 802 and want information on the catastrophic plan.

If you want to speak with someone at Local 802 about the plan, contact Recording Vice President Bill Dennison at (212) 245-4802, ext. 110.

(If you received the application in the mail, you’ll notice a deadline of Sept. 30. In fact, the plan allows for enrollment beyond this date. If you are interested, call Future Planning Associates right away.)