What is a catastrophic health insurance plan?

Learn more about catastrophic health insurance plans.

What you need to know

Catastrophic plans are a special type of health insurance plan available for people under the age of 30 or people who qualify for a hardship exemption. Catastrophic plans have low monthly premiums; however, the deductibles are very high. The deductible for catastrophic plans for 2019 are $7,900.

Unlike other marketplace plans, Catastrophic plans do not cover at least 60% of your medical expenses annually. Catastrophic plans are designed to provide you with the minimum amount of coverage in case something terrible happens to you. It is not a good plan for someone who plans on frequently utilizing their health insurance plan for care of a chronic condition.

Despite their limitations, Catastrophic plans do count as qualifying health insurance and will prevent you from having to pay a fee on your taxes. Like other qualifying health plans, Catastrophic plans do cover 100% of the cost of some preventative services. Additionally, they cover three primary care visits per year.

If you qualify for a premium tax credit, you may be able to afford a Bronze or Silver plan that provides you with better coverage and is overall cheaper despite having higher premiums. You cannot use a premium tax credit on a Catastrophic plan.
