Understanding what a catastrophic health plan is and if it is right for you!
Under the Affordable Care Act, a catastrophic health plan is a specific type of health insurance policy that has low monthly premiums and very high deductibles. They can be an affordable way for some people to protect themselves in a worst case scenario situation, like a serious injury or illness, protecting them from very high medical costs.
A Catastrophic health plan offers lower premiums, but has higher out-of-pocket costs than other plans on the marketplace. They offer protection against very high bills if you’re seriously hurt or injured. These plans cover three visits to a primary care doctor per year at no cost. They also include free preventive benefits, like vaccines and screenings, even if you haven’t paid your deductible. Unlike other plans, if you enroll in a Catastrophic plan, you won’t be eligible for tax credits that may lower your premium costs or for other savings.
People under 30 may buy catastrophic coverage. If you’re 30 or older and want to enroll in a Catastrophic plan, you must apply for an exemption to show that other coverage options are unaffordable.
Marketplace coverage is considered unaffordable if the lowest cost Bronze-level plan available to you through Maryland Health Connection in the tax year is more than 9.66% of your household income for plan year 2026. The cost to you must include any tax credits you would qualify for if you enrolled in that plan.
You can purchase a plan from the Maryland Health Connection website directly or through a licensed insurance broker.
