What type of coverage does catastrophic health insurance provide?

Catastrophic health insurance is designed primarily to protect individuals against high medical costs associated with severe illnesses or accidents. This type of coverage typically has a high deductible, which means that the policyholder must pay a significant portion of their medical expenses out-of-pocket before the insurance begins to cover costs. Once the deductible is met, catastrophic insurance provides coverage for necessary medical services, helping to alleviate financial burdens in the event of a major health crisis.

This approach is particularly beneficial for young and healthy individuals who want to maintain affordable premiums while still protecting themselves from the financial risk of catastrophic health events. It's tailored to ensure that once the individual encounters high medical expenses due to serious health issues, they can receive care without facing exorbitant out-of-pocket costs for all medical services.

By contrast, routine health check-ups and preventive care, comprehensive coverage for all medical expenses, and exclusive coverage for prescription medications are not features typically associated with catastrophic plans, as these plans only kick in after meeting a high deductible and mainly focus on significant health-related incidents.