Catastrophic health insurance refers to a type of health insurance coverage that offers protection against severe and unexpected medical expenses. It is designed to provide financial security in the event of a major illness, injury, or medical emergency.
Typically, catastrophic health insurance plans have high deductibles, which means that individuals must meet a significant amount of healthcare costs out of pocket before the insurance coverage kicks in. These plans have lower monthly premiums compared to comprehensive health insurance plans, making them more affordable for those who are relatively healthy and do not require frequent medical care.
The coverage provided by catastrophic health insurance plans typically includes essential health benefits mandated by the government, such as emergency services, hospitalization, and prescription drugs. However, they often do not cover routine and preventive care, such as doctor visits and vaccinations.
Catastrophic health insurance is primarily designed to protect individuals from financial devastation caused by massive medical bills. It acts as a safety net for individuals who face unexpected and expensive healthcare situations. Although it may not cover routine healthcare costs, it offers significant coverage for major medical events.
It is important to note that catastrophic health insurance plans are usually only available to individuals under a certain age limit, typically younger than 30, or those who qualify for a hardship exemption from the Affordable Care Act requirements.
