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 is different. They are short term policies to provide major medical coverage as you move from one policy to another. Both 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. Also, if you do qualify for income tax credits the Bronze and Silver Plans may be a better value. The 2023 ACA Catastrophic Plan deductible is high at $9,100 for an individual and $18,200 for a family.

It is useful to have access to telehealth service, regardless of the plan. However, with a Catastrophic plan access to a doctor after the 3 free visits 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 in order to qualify. If you qualify for a Catastrophic plan, you’ll see them displayed when you compare plans in the Marketplace.