What is a catastrophic health insurance plan?

A catastrophic health insurance plan is a health insurance plan that provides coverage for very serious medical events, such as accidents, illnesses, and surgeries, but only after the individual or family has paid for a certain amount of medical expenses out-of-pocket. In Virginia, a catastrophic health insurance plan must, at the very least, meet certain requirements to be legally considered an insurance plan. These requirements include covering at least three office visits per year, one preventive care visit per year, and coverage for certain types of prescription drugs. Additionally, catastrophic health insurance plans must have an annual or lifetime maximum dollar amount that the insurance company will pay out for each individual or family. Once this maximum amount is reached, any additional medical expenses must be paid for out-of-pocket by the individual or family. Catastrophic health insurance plans are often more affordable than traditional health insurance plans, but they cover significantly less. They are often used by individuals and families who either cannot afford traditional health insurance or are ineligible for government subsidized plans.

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