A Catastrophic health plan is a type of ACA health insurance designed to protect against worst-case medical scenarios at the lowest possible monthly premium. It is only available to people under 30, or adults of any age who qualify for a hardship or affordability exemption.
Catastrophic plans have the highest deductibles of any ACA plan type — equal to the federal out-of-pocket maximum for the year ($9,200 for individuals in 2026). Before you meet that deductible, you pay 100% of most medical costs out-of-pocket. Three primary care visits per year are covered before the deductible, and all ACA-required preventive services are covered at $0.
Important limitations compared to metal tier plans:
For most people under 30, comparing a Bronze plan (which does qualify for APTC) to a Catastrophic plan will reveal the Catastrophic plan is only cheaper if you don’t qualify for any subsidy. Run the comparison before assuming Catastrophic is your lowest-cost option.
A Bronze plan covers about 60% of average health care costs and qualifies for Premium Tax Credits. A Catastrophic plan has a higher deductible, doesn’t qualify for subsidies, and covers only 3 primary care visits before the deductible. If you qualify for any APTC, a Bronze plan is almost always more financially sound than a Catastrophic plan.
You must apply for a hardship exemption or affordability exemption through the Marketplace. Hardship exemptions cover situations like homelessness, bankruptcy, domestic violence, or a death in the family. The affordability exemption applies when the lowest-cost ACA plan available to you exceeds a set percentage of your income. A broker can help determine whether you qualify.
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