Can I buy a "catastrophic" plan under the new Health Reform law?

Who can buy a "catastrophic" plan?

For most people, a "catastrophic" plan will not be an option. The Affordable Care Act limits your out-of-pocket risk on most new health plans, making catastrophic plans not compliant with the new law for most people.

However, there will be a "catastrophic" health plan available in the exchange starting in 2014. People under 30 years old or those who have limited incomes and qualify for a hardship exemption may be able to buy the "catastrophic" to save premium.

What is a "catastrophic" plan?

It protects you from very high limited costs, but asks you to incur for expenses than other, more comprehensive plans in the marketplace. A catastrophic plan generally requires you to pay a big portion of your health costs upfront and mainly provides protection against very large claims and worst-case scenarios.

Catastrophic plans can still provide preventive care at no cost and cover some primary care office visits.

Can I qualify for reduced premiums for a "catastrophic" plan?

If you decide to get a catastrophic plan through the exchange, you will not be able to qualify to lower that premium or the out-of-pocket expenses based on your income like you can with more comprehensive options in the exchange.