What can individuals expect from catastrophic plans in terms of premium and deductible?

Catastrophic plans are designed primarily for young, healthy individuals who want to safeguard themselves against unforeseen major medical costs while keeping their monthly payments low. Therefore, one of the defining features of catastrophic plans is that they typically come with low premiums and high deductibles. This means that while the monthly cost to maintain the insurance is less than other plans, the insured individual will need to pay a substantial amount out-of-pocket before the insurance begins to cover additional healthcare expenses.

For individuals who opt for a catastrophic plan, this structure makes financial sense if they expect low healthcare usage but want protection in case of emergencies. These plans are particularly appealing to those who can afford to assume more risk upfront, thereby saving money on regular premiums. Such arrangements are common in insurance designs aimed at providing a safety net while discouraging unnecessary medical spending.