Catastrophic health insurance plans are those plans that have a lower premium and a higher deductible. The government defines catastrophic health insurance as those plans that meet the requirements of Qualified Health Plans (QHPs) but don’t cover expenses after 3 primary care visits to the doctor before the plan’s deductible is met.
The real benefit of the catastrophic health insurance plans is that the premium you pay each month is lower than the cost of QHPs plans. Still, you have to be ready that the out-of-pocket costs for deductibles, co-payments, and coinsurance are usually higher.
According to information from HealthCare.gov, the average annual deductible is $6,850. It means that you won’t get a help until you pay $6,850.
It’s a so-called catastrophic health insurance cost. It’s the answer to the common question “How much does catastrophic health insurance cost?”
It’s the right decision for healthy people. If you want to cover a major illness or injury expenses but don’t want to pay for ordinary expenses out-of-pocket, this type of health insurance is for you.
Typically, catastrophic health insurance plan is designed for people under 30 years old. If you are over 30 years old, you should try to qualify for a hardship exemption. If your financial conditions don’t allow you to qualify for a hardship exemption, you should try to apply for this option through the Marketplace.