What is a catastrophic health insurance plan?

Learn more about catastrophic health insurance plans.

What you need to know

Catastrophic plans are a special type of health insurance plan available for people under the age of 30 or people who qualify for a hardship exemption. Catastrophic plans have low monthly premiums; however, the deductibles are very high. The deductible for catastrophic plans for 2019 are $7,900.

Unlike other marketplace plans, Catastrophic plans do not cover at least 60% of your medical expenses annually. Catastrophic plans are designed to provide you with the minimum amount of coverage in case something terrible happens to you. It is not a good plan for someone who plans on frequently utilizing their health insurance plan for care of a chronic condition.

Despite their limitations, Catastrophic plans do count as qualifying health insurance and will prevent you from having to pay a fee on your taxes. Like other qualifying health plans, Catastrophic plans do cover 100% of the cost of some preventative services. Additionally, they cover three primary care visits per year.

If you qualify for a premium tax credit, you may be able to afford a Bronze or Silver plan that provides you with better coverage and is overall cheaper despite having higher premiums. You cannot use a premium tax credit on a Catastrophic plan.

Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.


50 West 23rd Street, Floor 9

New York, NY 10010

24/7 - Available when you need us

Monday-Thursday | 9am-11pm ET
Friday | 9am-8pm ET
Saturday | 9am-9pm ET
Sunday | 10am-9pm ET