What is Catastrophic Health Insurance?

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Catastrophic health insurance is a high deductible, low premium medical coverage plan offered under the Affordable Care Act that’s available to people under the age of 30 or to people who have obtained “hardship exemption”.

The plan is meant to protect you in the event of an emergency such as a medical emergency that costs thousands of dollars. It offers the minimum essential coverage at the lowest existing premiums. The drawback is you’ll pay more money out of your own pocket on medical bills before the plan begins covering expenses.

However, under normal circumstances, you won’t have to pay out-of-pocket costs for copays and coinsurance. You are allowed three primary care visits and free preventative services like immunization and screening under the plan. Any other health-care-services must be paid in full until the deductible is met.