What is a Catastrophic health plan, who is eligible, and what benefits does it primarily cover?

• A. A Catastrophic plan has very high premiums and low deductibles.
• B. A Catastrophic plan has very low premiums and very high deductibles; generally available to people under 30 or with hardship exemptions; it provides coverage for essential health benefits after the deductible and includes limited preventive and emergency coverage.
• C. A Catastrophic plan covers only dental and vision.
• D. A Catastrophic plan has moderate premiums and moderate deductibles.

Answer: (B)

Catastrophic health plans are built around a very high deductible and a very low monthly premium. This structure makes them a budget-friendly option for people who are young or otherwise healthy but want protection against major medical costs if something serious happens. Eligibility is generally limited to individuals under 30 or those who qualify for a hardship or affordability exemption.

The benefits are focused on protection for essential health services after you meet the high deductible. In practice, you’d pay out-of-pocket until the deductible is met, but you still get some limited coverage for preventive services and emergency care. Some plans may also offer a few basic primary care visits before the deductible applies.

This description fits catastrophic plans best because it emphasizes low monthly costs, a very high deductible, eligibility rules, and the emphasis on major medical coverage after the deductible, with limited pre-deductible preventive and emergency coverage. The other options describe plans with higher premiums, lower deductibles, or narrower coverage (like dental/vision) that don’t match how catastrophic plans are designed.