What is a catastrophic health insurance plan?

A catastrophic health insurance plan is a type of health insurance plan that is designed to protect individuals from major medical expenses from unexpected illnesses and injuries. In Washington state, these plans are usually less expensive than other types of health insurance plans and typically have lower monthly premiums, but higher out-of-pocket costs for individuals. Catastrophic health insurance plans typically have a very high deductible. This means individuals will have to pay a large amount of money out-of-pocket before their insurance will cover any expenses. Typically, the plan will only cover major medical expenses that would otherwise be too expensive for the individual to pay on their own. These plans are typically aimed at young adults and people who can’t afford more comprehensive health insurance plans. In Washington, catastrophic health insurance plans do not have to comply with the Affordable Care Act’s list of essential health benefits, which means these plans often don’t cover preventive care and other important services. Catastrophic health plans also do not qualify for subsidies under the Affordable Care Act. In general, catastrophic health insurance plans can be used to cover a variety of unexpected medical expenses, but they are not recommended for individuals who need comprehensive coverage or access to preventive care services. Individuals should consider their individual health needs and financial situation before deciding if a catastrophic health insurance plan is the right choice for them.

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What is a catastrophic health insurance plan?

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