People under the age of 30 and some people with limited incomes may buy what is called a “catastrophic” health plan beginning October 1, 2014. A catastrophic plan is designed to protect you from very high medical costs.
A catastrophic plan generally requires you to pay all of your medical costs up to a certain amount, usually several thousand dollars. Costs for essential health benefits over that are generally paid by the insurance carrier.
Catastrophic policies generally have lower premiums than a more comprehensive plan, such as a bronze, silver or good plan. Catastrophic plans may be thought of as “worst case insurance” – designed to help with major health conditions.
Marketplace catastrophic plans cover preventitive benefits as defined thru the Affordable Care Act!
In the Health Insurance Exchange Marketplace, catastrophic policies cover 3 primary care visits per year at no cost. These plans also cover preventive benefits with no out of pocket cost sharing!
If you have a catastrophic plan in the Marketplace, you can’t get lower costs on your monthly premiums or on out-of-pocket costs based on your income. Unfortunately, catastrophic plans do not qualify for monthly health plan subsidies.
Catastrophic plans may be available for people with limited incomes! People 30 and over with low incomes for whom other insurance is not considered affordable or who have received a hardship exemption from the individual mandate fee may be able to buy these catastrophic plans in the Marketplace.
You can learn if you qualify for a catastrophic plan in the Marketplace starting October 1, 2014! When you fill out a Marketplace application you will have catastrophic plans listed as options if you qualify for them. If you don’t qualify for a catastrophic plan, you won’t see them as an option.