CATASTROPHIC HEALTH PLAN
Back to GlossaryDefinition
Marketplace plan with very high deductible and low premiums available to people under 30 or with hardship exemptions.
Summary
A Catastrophic Health Plan is a type of health insurance available through the Health Insurance Marketplace that features extremely high deductibles (typically $8,000+ annually) and low monthly premiums. These plans are designed as a safety net for major medical emergencies and are only available to people under 30 years old or those who qualify for hardship exemptions. While monthly costs are low, you'll pay most routine medical expenses out-of-pocket until you reach the high deductible threshold.
Usage Context
Understanding catastrophic health plans is important when studying health insurance options, healthcare policy, marketplace enrollment strategies, and insurance decision-making for young adults and those facing financial hardship.
Common Confusions
- Thinking catastrophic plans cover routine medical care at low cost
- Confusing catastrophic plans with high-deductible health plans (HDHPs)
- Believing anyone can purchase a catastrophic plan regardless of age
- Assuming catastrophic plans don't cover preventive care
- Thinking the low premium means overall low healthcare costs
