What does "Catastrophic Coverage" provide insurance against?

Catastrophic coverage is a type of health insurance that is specifically designed to protect individuals against very high-cost medical events. This type of insurance typically has a lower premium but comes with a higher deductible and is intended to cover significant health emergencies, such as serious accidents, hospitalizations, or severe illnesses.

The benefit of catastrophic coverage is its focus on major healthcare expenses, which may otherwise lead to financial hardship if one were to face an unexpected and costly medical event. It is important to note that while catastrophic plans may also cover some preventive services at no additional cost, they are not designed to manage routine medical expenses or general health maintenance. Instead, they serve as a safety net for individuals who want to ensure that they are protected against the high costs associated with serious health issues, without needing to pay for regular, ongoing healthcare costs.