What Is a Catastrophic Health Plan? A catastrophic health plan is a type of insurance that covers medical expenses in the event of a serious illness or injury.

A catastrophic health plan is named as such because it carries the highest level of cost-sharing allowed by law.

Catastrophic health plans have certain unique features. One such feature is that not everyone qualifies for this type of plan.

Individuals who are under the age of 30 or over the age of 30 and have a hardship exemption or affordability exemption qualify for catastrophic health insurance plans.

Catastrophic health plans are available for individuals shopping on the Marketplace if they meet eligibility requirements. Additionally, insurers outside of the Marketplace offer catastrophic health plans as well.

Catastrophic health plans have low monthly premiums, but come with high deductibles. This means that individuals will need to pay for most medical services out-of-pocket before the plan covers any expenses. Once the deductible has been met, however, the plan pays 100% of covered costs without requiring additional co-payments or coinsurance from insureds.

Catastrophic health plans are a type of insurance coverage that provides protection against severe and unexpected medical emergencies. These types of plans typically have lower premiums but higher deductibles, meaning that they may not cover routine or preventative care costs. Catastrophic health plans can be an affordable option for individuals who do not require frequent medical attention but want to ensure they are protected in the event of a serious illness or injury.

Catastrophic health plans cover the same essential health benefits as other Marketplace listed plans, including preventative services at no cost. Additionally, insureds can visit their doctor three times before meeting their deductible.

Some people may benefit from catastrophic health insurance plans, but they can be more expensive in the long run for others. Individuals who qualify for a premium tax credit may find better coverage with bronze or silver plans. As with any type of insurance, it’s important to compare policies and their coverages as well as out-of-pocket expenses before making a decision.