Q: What is catastrophic insurance? What does it cover?

A: In typical use, catastrophic insurance refers to a major medical policy or health insurance policy. It is in contrast with more traditional policies that cover a wider range of services, since it is only really intended to protect you financially in the event of a true health emergency. 

You will find that most major medical insurance companies offer plans that cover catastrophic circumstances, like hospital stays and large medical expenses. You may also hear this plan referred to as a “hospital-only” plan or short term major medical insurance. Some catastrophic insurance plans may not provide prescription drug coverage, preventive care coverage, or immunizations. 

These policies may be less expensive to purchase because they have higher deductibles. Until your deductible is met, you’re responsible for medical costs not covered in your policy, so it’s important to take that into consideration when comparing catastrophic health insurance quotes.