A Catastrophic health insurance policy is all you need—if you hardly ever use it. Deductibles are high and premiums are low.

To be eligible you must be:

• Under the age of 30, OR
• Be eligible for a hardship exemption

How Catastrophic Health Insurance Works

Think of it as a health back-up plan. You’re young and healthy, and probably can’t afford a more typical plan. With catastrophic coverage, you’re banking on remaining healthy and only pay a low monthly premium. Then, there’s the high deductible, a good reason to not get sick.

The Break-Down

Catastrophic insurance is in the final, least expensive tier in the state or federal Affordable Care Act (ACA) Marketplace, Bronze. It breaks down like this:

• A low premium, so you don’t have to pay as much every month.
• The policy also has a high deductible, which means it’ll take you longer to meet. You’ll have to p you-of-pocket. When you hit the maximum deductible, your policy pays 100 percent of what is covered.
• Designed for those who are young and healthy and only want low-cost, minimal coverage.
• You might qualify for Catastrophic insurance if you are a experiencing a hardship.

How Much Does It Cost?

Catastrophic plan deductible amounts are set by government – $8,550 in 2021. You must pay for all health care expenses until they total the amount of the deductible. In this case, the maximum you pay is $8,550 before insurance takes over medical the rest of the enrollment year.

What Does Catastrophic Insurance Cover?

Catastrophic health insurance doesn’t cover much of what is available in a regular policy. Under a Catastrophic plan you would receive coverage:

• Three primary care visits a year
• Preventive care services
• As with all ACA policies, these essential medical benefits services are covered:
  • Hospitalization
  • Pregnancy
  • Prescription drugs
  • Mental health services
  • Rehabilitation services
  • Pediatric services
  • Preventive and wellness care

What Is Medicare Catastrophic Coverage?

Medicare Catastrophic coverage is under a Medicare drug policy. You pay a small coinsurance cost for covered drugs once you pay more than $5,000 out-of-pocket.

How to Qualify for Catastrophic Health Insurance?

You must be under the age of 30 or eligible for a hardship exemption. Hardship examples include:

• You are homeless
• A utility company sent you a shut-off notice
• You were evicted
• You filed for bankruptcy
• A family member died
• You have sizeable medical debt you are unable to pay
• You were a victim of domestic abuse
• A disaster, natural or otherwise, has substantially damaged your property

How to Buy Catastrophic Health Insurance

To obtain a Catastrophic health insurance policy, apply through your state’s health insurance exchange. You can find more information and fill out an application at HealthCare.gov.