In this context there are 2 types of “Catastrophic” health plans, 1) ones that qualify on the ACA market, and 2) ones that don’t. The second type can’t be sold as major medical insurance anymore. They include policies to provide short term limited duration coverage, hospital only insurance, or are part of health care sharing ministries. Both types have low monthly premiums and very high deductibles.

The ACA Catastrophic plans may protect you in a worst-case scenario, they are not well suited for people with chronic illnesses or for families. The monthly premium is low, but you can’t use the income-based tax credits to reduce your costs. The 2026 ACA Catastrophic Plan deductible is high at $10,600 for an individual and $21,200 for a family. Also, if you do qualify for income tax credits the Bronze and Silver Plans may be better value.

It is useful to have access to telehealth service, regardless of the plan. However, after a catastrophic plan’s 3 free doctor visits a non-catastrophic plan may prove more economic. You can qualify for a catastrophic plan on the ACA market if you are under 30 years old. If you are older you need to get an affordability or hardship exemption to qualify. If you qualify for a Catastrophic plan, you’ll see them displayed when you compare plans in the Marketplace.