Catastrophic coverage is a type of health insurance that provides financial protection against the high costs of major medical events, such as hospitalizations, surgeries, and cancer treatment. Unlike traditional health insurance plans, which have annual deductibles and copayments, catastrophic coverage plans have much higher deductibles, but they also have lower monthly premiums. This makes them a good option for people who are healthy and don’t expect to need much medical care, but who want to have peace of mind knowing that they’re protected against the costs of a major medical event.
Catastrophic coverage plans are typically offered by private health insurance companies, and they’re regulated by the Affordable Care Act (ACA). To be eligible for a catastrophic coverage plan, you must be under the age of 30 or have a hardship exemption. Catastrophic coverage plans have a number of benefits, including:
