This content is for general informational purposes and does not constitute medical, legal, or financial advice. Healthcare rules and costs change annually. Last reviewed: January 1, 2025. Always verify current details with your insurer, employer, or a licensed healthcare navigator.
Catastrophic Plan
A low-premium, very high-deductible plan available to people under 30 or with hardship exemptions.
Full Definition
Catastrophic health plans are bare-bones plans designed to protect against worst-case scenarios. They have very low premiums but extremely high deductibles (equal to the ACA out-of-pocket maximum — over $9,000 for 2025). They cover three primary care visits per year and preventive care before the deductible. They are only available to people under 30 or those who qualify for a hardship or affordability exemption. You cannot use premium tax credits to lower the cost of a catastrophic plan.
Real-World Example
A healthy 27-year-old freelancer chooses a catastrophic plan with a $180/month premium but a $9,450 deductible. She pays everything out of pocket for routine care but is protected if she needs surgery or hospitalization.
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