Catastrophic insurance is meant to be a sort of safety net that covers you when something like a major accident or serious illness comes up.
It only covers three regular doctor visits a year and certain preventive care. So your monthly charge, or premium, might be lower for catastrophic insurance, but you will likely have to pay higher costs out of your own pocket before full coverage kicks in for things like essential benefits. And if you buy one of these plans, you won’t be eligible for any financial assistance to help pay for it.
In the marketplace, catastrophic plans are only available to people under 30 years old, people who don’t earn much, and people who experience certain hardships, like homelessness, bankruptcy, or unexpectedly high medical bills.
If you are older than 30, you might also qualify temporarily to buy catastrophic insurance if you have an old policy that was canceled for not meeting the new ACA standards and you can’t afford anything else.
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