What are "catastrophic plans" designed for?

Catastrophic plans are specifically designed to provide coverage for young adults, typically under the age of 30, although some individuals with certain hardships may also qualify. The primary purpose of these plans is to offer a lower premium option that still covers essential health services, but with a high deductible that needs to be met before most of the coverage kicks in. These plans are particularly beneficial for the younger demographic that may not require comprehensive health care coverage but want protection against unexpected, high-cost medical events.

Once the deductible is satisfied, catastrophic plans do cover essential health services, which includes doctor's visits and emergency care, making them a suitable choice for those who want basic coverage for serious health issues without the higher costs associated with more robust policies. This is in contrast to other groups, such as older adults or individuals with pre-existing conditions, who may require more immediate and consistent care.