What characterizes "catastrophic health insurance"?

Catastrophic health insurance is characterized by having low premiums and high deductibles. This type of plan is designed primarily for young, healthy individuals who want to protect themselves financially in case of very high medical costs due to serious accidents or illnesses.

The low premiums make it an attractive option for those who do not expect to utilize a lot of medical services; they effectively offset the risk of high out-of-pocket expenses if a health crisis occurs. The high deductible means that individuals must pay a larger amount out of pocket for their medical expenses before insurance starts covering costs. This design encourages individuals to save for potential future health expenses while still providing a safety net for catastrophic situations.

The other options suggest features not associated with catastrophic insurance. Comprehensive plans with high premiums, for example, offer extensive coverage and lower out-of-pocket costs, which is contrary to the basic principle of catastrophic plans. Options focusing solely on chronic condition management or maternity services are also misaligned, as catastrophic plans are not specifically designed for these ongoing or specialized healthcare needs. Instead, they primarily function as a safeguard against extreme health events.