How is "catastrophic health insurance" defined?

Catastrophic health insurance is defined as a type of health insurance plan that is designed to protect individuals from high costs associated with serious health issues. It typically features low monthly premiums and high deductibles, meaning that insured individuals must pay a sizable amount out-of-pocket before their insurance coverage kicks in. However, once the deductible is met, the plan provides coverage for essential health benefits, which may include a wide range of medical services and treatments necessary for comprehensive healthcare.

This structure is particularly appealing to younger, healthier individuals who may want to avoid high premiums while still having a safety net in the event of a significant medical incident. The essential health benefits that are covered after the deductible is met are consistent with the requirements outlined in the Affordable Care Act, ensuring that even catastrophic plans maintain a certain level of coverage for necessary healthcare services.