Catastrophic Plan
Definition current for the 2026 plan year · Last reviewed July 2026
In one sentence: A minimal, cheap plan for under-30s (or hardship exemptions) — high deductible, three free primary visits, no subsidy eligibility.
Catastrophic plans are the marketplace's floor: available only to people under 30 or those with a hardship/affordability exemption. They cover the same essential benefits as other plans but with a deductible equal to the out-of-pocket maximum (about $10,600 in 2026) — you pay nearly everything until a truly bad year, hence the name. Sweeteners: three primary-care visits per year and all preventive care are free before the deductible.
The critical limitation: premium tax credits cannot be used on catastrophic plans. That single rule makes them the wrong choice for almost anyone who qualifies for a subsidy — a subsidized bronze plan is frequently cheaper and better. They make sense mainly for under-30s who earn too much for meaningful subsidies but want cheap legal coverage.
If you're weighing one at 26 because money is tight, read the turning-26 guide first — at entry-level incomes, a subsidized bronze plan usually wins.