What are "catastrophic health plans"?

Catastrophic health plans are designed primarily for young individuals or those seeking an affordable option for health insurance while still being protected from exceptionally high costs. They offer low monthly premiums, making them attractive to consumers who may not anticipate needing extensive healthcare services. However, these plans come with high deductibles that must be met before any significant coverage kicks in, meaning that while the upfront costs are lower, the insured will pay more out-of-pocket before the insurance begins to cover a larger share of costs.

This structure is beneficial for individuals who want to safeguard against serious accidents or illnesses but are willing to handle routine healthcare expenses out-of-pocket. The focus on high deductibles helps keep monthly premiums affordable, aligning with the needs of a demographic that values cost savings over comprehensive coverage.

The other options presented don't accurately describe catastrophic health plans. For instance, plans with no deductibles for primary care would not fit the high-deductible model, and those that cover only preventive care services or provide comprehensive coverage contradict the main characteristics and purpose of catastrophic plans.