Why might someone choose a catastrophic health plan?

Choosing a catastrophic health plan is often motivated by the desire to minimize costs in the event of serious health emergencies. Catastrophic plans are designed to provide a safety net for unexpected and high-cost medical situations, covering essential health benefits after a deductible is met. They typically have lower monthly premiums compared to other plans, which can make them appealing for individuals who are generally healthy but want to be protected against significant financial burdens in case of a serious accident or illness.

These plans require the insured to pay all their healthcare expenses up to a certain amount before the insurance kicks in, making them less suitable for those needing regular or comprehensive routine care, or those who anticipate high healthcare usage. As a result, while they do not cover all potential health expenses or offer access to a wide network of providers, they fulfill the primary goal of providing security against catastrophic costs.