What is a catastrophic health plan?

A catastrophic health plan is designed to provide an affordable coverage option for young and healthy individuals, offering them a means to protect against significant medical costs while keeping premiums low. These plans typically have lower monthly premiums compared to other types of health insurance, making them appealing to those who may not require regular medical care.

The most notable feature of a catastrophic health plan is that it covers essential health benefits, but only after the insured has met a high deductible. This means individuals will need to pay out-of-pocket costs for medical services up to a certain threshold before the insurance begins to pay. This structure is particularly suited for younger and healthier individuals who anticipate having lower healthcare needs and are looking for a way to safeguard against unforeseen, high-cost medical events.

This understanding highlights the plan's purpose: to balance affordability with a safety net for significant health expenses, making it distinct from other insurance offerings that may have higher premiums or different coverage stipulations.