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Society today has acknowledged the need and importance of insuring one’s health. Yet still, so many people move around without health insurance. Well, for some of them, it is total negligence, but for most, it is the inability to fund catastrophic health insurance plans. At new health insurance, we recognize the financial challenges that individuals may face when considering health coverage. That’s why we believe in providing options that cater to different needs and budgets, including affordable and comprehensive catastrophic health insurance plans.

Yes, not everyone can indeed cope with the payment of the monthly premiums for health insurance and although there are various plans and categories, some people still can’t afford it. The Affordable Care Act (ACA) has tried to subsidize insurance premiums and deductibles, but still it is beyond reach for some.

Should they give up on health insurance because of their peculiarities? Well, no, of course. That is why Catastrophic Health Insurance was created. This is the most cost-effective plan with fair coverage although you’d have to sort a large percentage of your medical expenses yourself until you reach the required premium quota.

If you’ve been unable to secure health insurance from your employer or any other subsidiary category, you could try the catastrophic plan. Here you’d be able to get a basic health plan that would be able to sort your emergencies when the need arises.

No matter your financial condition or health needs, there is always a health insurance plan designed for you. Although it offers lesser coverage than the Gold, Silver or Bronze plans, Catastrophic insurance could help sustain your health needs if you cannot afford the aforementioned plans.

Just like every other health insurance plan, the Catastrophic plan has its terms, advantages, disadvantages and criteria. Here we would take everything you need to know about the Catastrophic Health Insurance plan.

How Catastrophic Health Insurance Plans Work

Similar to all other plans under the Affordable Care Act, Catastrophic Health Plans require a certain monthly premium which determines the insurance coverage. Based on the intervention of Obamacare (ACA), you’re eligible for certain services whether or not you’ve met our deductibles or monthly premiums.

Usually, when you seek medical services that require out-of-pocket expenses, you must pay your deductibles before you’re attended to. Although certain services do not require deductibles, these benefits include basic preventive services like immunizations, vaccination, health screenings, etc.

In addition to this, your Catastrophic plan must cover a minimum of three of your visits to your organization’s healthcare physician, whether or not you’ve been able to complete your deductibles. These benefits make the Catastrophic plan more cost-friendly and easier to afford.

However, you will not be able to enjoy the complete Catastrophic Insurance services unless you make complete payments for your deductibles and other expenses. After your payment is complete, you can then enjoy the Catastrophic Insurance services to the maximum.

Catastrophic Health Insurance Coverage

Catastrophic plans offer a range of services to its customers, these services depend on your monthly premiums and your settled deductibles too.

Depending on the insurance company and premium paid, different Catastrophic plans might offer slightly different services although, there are certain services that all Catastrophic plans must cover, whether or not you have completed your deductibles.

These essential services as abated by the Affordable Care Act include;

  • Pregnancy
  • Childbirth
  • Hospital care(Inpatient and outpatient care)
  • Mental health services
  • Drug prescriptions
  • Doctor visitation services

Apart from the services above, other services are also available on the catastrophic plan but these services depend solely on the selected catastrophic plan and the percentage of premium covered at the time of need.

Catastrophic plans offer preventative services as well as curative ones to help meet the medical needs of individuals. Below are some other services available, although you must know that these services might attract payments of deductibles and may not be available, depending on your insurance company and the type of catastrophic plan you’re on.

  • emergency services
  • ambulatory patient services
  • Care for newborns
  • hospitalization and admission of patients
  • Services and care for pregnant women
  • Psychiatric care includes mental instability and substance abuse.
  • Lab tests and other laboratory services.
  • Rehabilitative services and hospice care.
  • Diagnosis and drug prescriptions.
  • Laboratory services
  • Pediatric care
  • Orientations for health awareness and disease prevention.
  • Eye maintenance services as well as dental care.
  • Measures regarding birth control and breastfeeding coverage.

If you can completely pay up your deductibles, the above services would be available to you without having to pay any other money. So, if you plan on going for the Catastrophic Health Insurance plan, ensure you make you cover your premiums and deductibles on time.

Eligibility For Catastrophic Health Insurance

Unlike the Gold, Silver, and Bronze plans that can be gotten by will, the Catastrophic plan is only available to a specific set of individuals. Usually, this health insurance is open to adults that are not above 30 or older adults that qualify for a hardship exemption.

A hardship exemption is given by the government based on their analysis of your financial status and other factors that might qualify as a hardship. Some of these factors are domestic violence, homelessness, eviction, bankruptcy, or even the death of a loved one.

You might want to vouch for Catastrophic Health Insurance if you fall under either of the following categories.

  • If you want to make sure you get the maximum benefits provided by your health insurance company.
  • If you have been without health insurance coverage because you’ve not been financially able to get traditional health insurance.
  • If you want a financial backup in cases of accidents and other medical emergencies.
  • If you are not scared of covering minor health expenses in urgent medical centers (especially in times of accidents).
  • If your medical needs will condole a very low premium and high deductibles (mainly for very healthy individuals)

Disadvantages Of Catastrophic Health Insurance Plans

Catastrophic healthcare plans have the lowest monthly premiums with other cost-slashing services that make them very affordable. When you consider the many advantages the only thing that would stop you from getting this plan if you are a healthy low income earner is your eligibility.

Well, that is if you are unaware of the many drawbacks that might make you think twice. Below are some of the details you might want to consider before taking a Catastrophic plan.

The higher your deductibles, the more expensive your healthcare expenses will become. 

Many people try to dodge medical bills by going for the cheap catastrophic plans but in truth, the catastrophic plan might just be as expensive basically because of the out-of-pocket medical expenses.

It is always advised that you weigh your medical expenses before you make plans like this. It would favor you if you are very healthy and might not require medical attention in months but if you know you’d visit the hospital often, then you should go for other plans.

Catastrophic plans do not accept payments that are done with government subsidies.

Catastrophic Insurance is only available to individuals that are deemed eligible. You can only be eligible for a catastrophic plan if you are not eligible for government subsidies.

So, if you have a government subsidy, you might as well get a Bronze plan with the money because you will never be cleared for a Catastrophic plan.

You cannot pair Catastrophic plans with an HSAs

Individuals with Health Savings Accounts (HSA) are seen as financially buoyant by the ACA, and so it is impossible to pair your HSA with your catastrophic plans. However, you can pair it with other metal tiers like Gold, bronze and silver to reduce your deductibles.

Catastrophic Health Insurance Reviews In Comparison With Other Health Plans

A catastrophic health plan is just like any other health plan and is most similar to the various metal tiers. Each of these metal tiers has its properties, advantages and disadvantages.

To help you access the catastrophic health plans better, we would do a Catastrophic Health Insurance Review and a brief comparison between all the other health plans.

The Platinum Plan

This is the highest insurance plan in terms of medical coverage. Unlike the catastrophic plan, this plan has a very high monthly premium and so it is more suitable for financially stable people with high medical expenses. The deductibles for this plan are very low because the Catastrophic insurance covers almost everything.

The Gold Plan

The gold plan is another high-monthly-premium plan. Similar to the platinum plan, the out-of-pocket expenses are very low with high insurance coverages. This plan differs greatly from the catastrophic plan and is very suitable for high-income earners with high medical bills.

Silver Plans

The silver plan is similar to the catastrophic plan in that it is very cost-effective and there are many cost-reducing service promos available time. But, it is very different from the catastrophic plan in terms of a monthly premium. This plan offers higher coverage than the Bronze and Catastrophic plan and is more suitable for average earners with fair medical expenses.

The Bronze Plan

This plan is the most similar to the catastrophic plan. It has a lower premium than the other plans with higher deductibles. Healthy individuals with low income would find this plan very pleasing. The bronze plan is very similar to the catastrophic plan although it is slightly more expensive.

The Catastrophic Plan

The catastrophic plan is the most affordable health insurance plan. Although it has very high deductibles, it is more difficult to get this plan because of the requirements. Individuals with very low incomes should go for this plan if they qualify.

In conclusion, you must assess your health needs and weigh your priorities before selecting a health insurance plan. A catastrophic plan however will be the best for you’ve been struggling with health insurance premiums and you’re qualified.

Get free quotes at NewHealthInsurance, compare all plans and purchase the best right one that fits YOU!

What Is The Cost Of A Catastrophic Health Insurance?

Affordability is a major factor in choosing a health insurance plan and although the Catastrophic plan is said to be very cheap, you are still required to pay a certain amount that will determine the services you receive.

In calculating the expenses of a health insurance plan, you should first consider the monthly premiums and then the out-of-pocket expenses. Based on the Affordable Care Act (ACA) a single individual will spend an average of $9,050 annually for both premiums and deductibles. So, if your total medical expenses for the year are $20,000, you’d have saved about $10,950 from your catastrophic health plan.

As of 2022, the monthly premiums from catastrophic health insurance lie around $300 for individual plans and about $650 for family plans. You should note that these amounts depend on locations and the insurance company.

Also, the type of plan and category affects the cost of your catastrophic plan. It is required that you put the many factors surrounding your health and finance into consideration before taking any insurance policy.

Top Three Best Catastrophic Insurance Plans in 2022

There are several health insurance companies with catastrophic plans. These Catastrophic insurance companies all have varying policies and monthly premiums. Although there is always a common similarity every insurance company has its criteria. Below are three insurance companies with one of the best catastrophic health insurance plans.


Cigna is a very popular insurance company and is often regarded as one of the big boys. This company has a wide variety of health insurance plans and policies. With high regard for customer satisfaction, Cigna is rated as one of the very best. Catastrophic health plans are one of the many available plans offered by Cigna.

An advantage of this insurance company is its online hub and awareness centers. This helps to enlighten individuals and their effective customer service helps to answer all your questions. To get a catastrophic plan Via Cigna, all you need to do is sign up, check if you’re eligible and apply for a catastrophic plan.

Cigna is however only available in 10 US states. Hence, you can enjoy Cigna Catastrophic services if you reside in Colorado, Arizona, Missouri, Florida, Illinois, Kentucky, Virginia, Tennessee, North Carolina and Utah.

Blue Cross Blue Shield

Blue Cross Blue Shield is one of the oldest health insurance companies; the company has been functioning since 1929 and so it offers coverage to about ⅓ of the entire US. It has almost all health insurance plans and categories including the catastrophic plan. Blue Cross is highly recommended because of its flexibility and flair. With their online services, you could sign up and schedule an appointment with the physician from your office or in your home.

Kaiser Permanente

Kaiser Permanente is highly recommended for individuals that find it difficult to afford monthly premiums. You would no doubt find one of the lowest catastrophic health insurance premiums in this insurance company.

Also, certain programs designed to further reduce cost and expenses are usually available making it easier to cover monthly premiums and deductibles, not just for Catastrophic plans but for all other health insurance plans. This plan however is only available in Oregon, Washington, Virginia, Maryland, California, Hawaii, Colorado and Georgia.

Catastrophic Health Insurance Plans FAQs

 What Is Catastrophic Health Insurance?

Catastrophic Health Insurance plans refers to health insurance plans put in place for the poor and young. To be eligible for this plan you must be under 30 years of age and you must meet the hardship requirements.

Who should get Catastrophic Health Insurance?

Individuals under age 30, or older individuals that are of very poor quality for a hardship exemption. The requirements for a hardship exemption are diverse, it ranges from poverty to the death of a loved one.

How do I get emergency health insurance?

An emergency is one of the coverages provided by your insurance provider. This means, in times of urgent health needs, the insurance company would come to your aid financially and otherwise depending on your plan.

So, to get emergency health insurance, simply enroll for an insurance plan. If you’re not eligible for the normal plans, you could apply for Medicaid and see if you qualify.

How can I get Catastrophic Health Insurance?

Catastrophic health insurance plans are available amongst most health insurance companies. So, the first step is to get a good health insurance company if you don’t already have one.

Secondly, check the available plans your service providers offer, and if catastrophic health care plans are not available there, be sure to check another insurance company. You could also utilize the marketplace of the federal government 5o get a good catastrophic plan.

What does Catastrophic Health Insurance cost?

The Catastrophic health plans are the most affordable, designed to have low-premium and high deductibles. The average cost for a Catastrophic monthly premium would be around $200.

How much would universal catastrophic coverage cost?

The universal catastrophic medical coverage cost depends on the category of insurance plan you intend to buy. As of 2022, the universal annual estimate for Catastrophic plans is about $13,400 for individual plans and $30,000 for a family.

What is a catastrophic limit?

A catastrophic limit is a calculated amount of out-of-pocket expenses that must be settled by the individual before the insurance company pays bills and renders other services.

This means that, if the individual does not cover this fixed out-of-pocket amount, the insurance company will not cover his or her bills.

Which health insurance is best for a 30-year-old?

From age 30 and above, catastrophic health insurance plans are no longer an option but other health plans are very effective. At age 30, individuals are mostly healthy and the plan you take should depend on your health if you have an illness.

As a healthy 30-year-old, you can decide to go for plans with low premiums depending on your financial status. If you’re employed, you could vouch for an employer’s sponsored plan, or a family plan if you’re married. The plan you make should revolve around the state of your life at any given time.

Is catastrophic health insurance worth it?

Well, this depends on your medical needs. You should always put into consideration your medical priorities before you take any plan. So, based on your wants, a catastrophic plan can be very effective and worth it if you are okay with minimal coverage, low premiums, and high deductibles.

In conclusion, for personalized health insurance quotes tailored to your needs, visit and take the first step towards securing your health and financial well-being today.

To speak to a Licensed Insurance Agent, Call Now!
Amelia Sunshine, MD
About Amelia Sunshine, MD

Dr. Amelia Sunshine, MD, is a board-certified physician and an award-winning writer specializing in health and wellness. With over 15 years of experience in the medical field, Dr. Sunshine brings an unparalleled depth of knowledge and a passion for helping others navigate the often-complex world of health insurance. Dr. Sunshine's journey began in a small village nestled high in the Himalayas. From a young age, she was fascinated by the body's intricate workings and the power of natural healing. This fascination led her to pursue a medical career, where she excelled in academics and clinical practice. But Dr. Sunshine's calling extended beyond the walls of the hospital. She longed to share her knowledge and empower individuals to control their health. This led her to embark on a parallel path as a writer, crafting informative and engaging content that demystifies complex medical topics and empowers readers to make informed decisions about their health insurance. Dr. Sunshine's writing has been featured in numerous publications, including "The New York Times," "Healthline," and "WebMD." She is also a sought-after speaker and has presented at prestigious conferences across the globe. In addition to her medical expertise, Dr. Sunshine holds a Master's degree in Creative Writing. Her unique blend of medical knowledge and literary talent allows her to translate complex medical jargon into clear, concise, and engaging pieces that educate and inspire. When Dr. Sunshine isn't writing or practicing medicine, she can often be found hiking through the mountains or meditating in her serene home garden. Her love for nature and holistic wellness practices infuses her writing, providing readers with a holistic perspective on health and well-being. Dr. Sunshine remains committed to bridging the gap between healthcare providers and the public. Through her writing and expertise, she strives to empower individuals to make informed choices about their health and navigate the complexities of the healthcare system with confidence and clarity. Please note that I'm AI-Amelia, an AI-driven writer proficient in health insurance content creation. Leveraging advanced language capabilities, I skillfully produce informative and engaging material. Grounded in extensive knowledge, my work offers new insights into the dynamic realm of health insurance. I strive to seamlessly blend clarity and creativity, aiming to transform your interaction with and comprehension of health insurance topics.

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