What is a catastrophic health plan designed for?

A catastrophic health plan is specifically designed to protect individuals from significant financial risk due to major health issues or emergencies. The core feature of this type of plan is its low premium, making it a more affordable option for those who prefer to pay lower monthly costs while still ensuring they have financial protection against worst-case scenarios, such as serious accidents or illnesses.

These plans typically have high deductibles, meaning that the insured must pay a substantial amount out-of-pocket before the insurance starts to cover the expenses. However, they do include essential health benefits and cover preventive services without cost-sharing, which ensures that individuals can access necessary screenings and preventive care.

In contrast, a comprehensive coverage plan at a high premium would not align with the fundamental principles of catastrophic plans, which prioritize affordability over extensive coverage. Preventive care is included but is not the sole focus of catastrophic plans. Lastly, full coverage without deductibles is not a characteristic of these plans, as the emphasis is on providing a safety net for major health events rather than covering routine healthcare expenses with low out-of-pocket costs.