The ACA marketplace offers a plan tier below Bronze that most people have never heard of: Catastrophic plans. They offer the lowest premiums on the marketplace — but they come with significant restrictions and trade-offs.
What Is a Catastrophic Health Plan?
Catastrophic plans have very high deductibles and minimal coverage for routine care, but protect you from worst-case medical expenses. They’re designed as a safety net — protection against major accidents or illness rather than a tool for managing day-to-day healthcare costs.
In 2026, catastrophic plans have a deductible of $9,450 (the ACA out-of-pocket maximum). You pay all covered costs up to that amount, then the plan covers everything.
Who Is Eligible?
Catastrophic plans are available only to people who are:
- Under 30 years old, OR
- Any age with a hardship exemption (such as homelessness, recent bankruptcy, domestic violence, or being unable to afford coverage)
What Do Catastrophic Plans Cover?
Before you meet the deductible, most services cost full price. However, catastrophic plans do cover:
- Three primary care visits per year at no cost before the deductible
- Preventive care at no cost (same as all ACA plans)
- Emergency and hospitalization costs after the deductible is met
The Big Trade-Off: No Subsidies
Catastrophic plans are not eligible for premium tax credits. If you qualify for a substantial subsidy, a Silver or even Gold plan with the subsidy applied may actually cost you less per month than a catastrophic plan at full price.
Who Should Consider One?
Catastrophic plans make most sense for young, healthy individuals under 30 with low healthcare utilization and enough savings to cover the deductible in an emergency — who earn too much to qualify for meaningful subsidies.
Not sure if a catastrophic plan is actually the cheapest option for you? Garden State Benefits can run the real numbers, including subsidies.