Best Catastrophic Health Insurance

How to get coverage for emergencies

Updated June 04, 2022

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If you can’t afford the monthly premiums on a traditional health insurance plan, catastrophic coverage can be a valuable solution. Available to people under 30 or who meet the government’s criteria for a hardship exemption, catastrophic plans have low monthly premiums, but high deductibles and out-of-pocket maximums. Designed to cover you from major accidents or illnesses, catastrophic plans are an affordable safeguard.

If you’re planning on enrolling in a catastrophic health plan, it’s wise to shop around to get the best rates and coverage. We researched 12 insurers that offer catastrophic and short-term catastrophic plans to identify the four best companies based on cost, benefits, and reputation. Here are our top choices.

The 4 Best Catastrophic Health Insurance of 2022

Best Overall: Blue Cross Blue Shield
Best for Added Benefits: Oscar
Best for Virtual Care: Kaiser Permanente
Best Short-Term Coverage: Pivot Health

Best Overall : Blue Cross Blue Shield

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Blue Cross Blue Shield (BCBS) is our pick as the best overall provider of catastrophic health insurance because of its vast provider network and benefits.

Pros

Large provider network
Blue365 member discount program
Emergency care full covered when you travel to another state, out of your network

Cons

Options and customer service vary by location
Pricing varies by state
Not eligible for the premium tax credit

Founded in 1929, BCBS is one of the largest insurance companies in the country, insuring one in three Americans. BCBS’s structure is made up of 34 different independent, community-based BCBS companies. Because each BCBS company operates independently, they can offer customized options to the communities they serve.

BCBS companies have a huge provider network, with over 96% of hospitals and 95% of doctors and specialists contracting with BCBS. They offer multiple catastrophic PPO plans, so you can choose the doctors you like and don’t need a referral to get specialist care.

BCBS plans may also offer emergency care when you travel outside of the United States at the out-of-network coverage level. Inside the United States, you can get full coverage for emergencies while traveling.

With BCBS’s Blue365 program, you can get valuable discounts at national and local retailers, including dental and vision services, fitness gear and apparel, gym memberships, and healthy eating options.

However, BCBS plans, options, and prices can vary widely by location. And, because catastrophic plans are so low cost, you’re not eligible for the premium tax credit. Each BCBS chapter is independent, so each has its own National Association of Insurance Commissioners (NAIC) rating, and customer service levels can differ from place to place.

BCBS is our top pick because of the number of options you have with the insurer and the large provider network you have access to as a member.

Best for Added Benefits : Oscar

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Oscar is our top choice for health insurance with added benefits. You can earn rewards for healthy habits like walking, and you have access to a care team to help you manage your health.

Pros

Earn rewards for healthy habits
Virtual urgent care available
Each member has access to a care team.

Cons

Only available in select markets
Smaller provider network
Higher-than-average number of complaints

Oscar is a relatively new company that launched in 2012. It offers unique features like both virtual urgent care and virtual primary care for $0.

Oscar has an app that syncs with your Google Fit or Apple Health device. You can earn $1 for every day you reach your step goals. In California, members can also earn rewards by reaching their sleep goals.

You will also have access to a care team—a team of guides and nurses that will help you find the best and most affordable care near you.

Oscar isn’t available everywhere. General healthcare plans are available in 22 states. Only five locations have catastrophic plans: New York, Los Angeles, Orange County (CA), San Francisco, and San Antonio.

Because Oscar is so new and is only available in some areas, it has a smaller provider network than some other insurance companies. And it’s had some growing pains as it expands. In 2021, the National Association of Insurance Commissioners complaint index for one of Oscar's larger regional subsidiary companies was 5.81, meaning it received over five times more complaints than is typical for a company of its size.

However, Oscar offers unique benefits that make it stand out from other insurers. With its telehealth and rewards program, you can get quality care at a relatively low cost.

Best for Virtual Care : Kaiser Permanente

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If you are looking for an insurer that offers robust virtual care, Kaiser Permanente is our first choice. You can get same-day care from healthcare providers via phone and video. There is also an option for emailing health questions.

Pros

Children’s eye exams and glasses
Covers additional health services
Same-day telehealth appointments by phone or video, plus email health questions

Cons

Not available in all areas
Prior authorization may be required for some services.

The Kaiser Permanente insurance company has been in operation since 1945, starting as an insurance company for shipyard and steel mill workers. Now, it is a large not-for-profit provider of health insurance with over 12.5 million members.

With Kaiser Permanente’s catastrophic plans, you can talk to a healthcare professional without visiting an office in person. You can get same-day appointments with doctors or nurses to deal with issues like sore throats, bladder infections, or allergies.

Appointments are available via phone or video, and if you have non-urgent health questions, you can contact a healthcare provider via email. Kaiser Permanente also can connect you to specialists through telehealth appointments.

With a catastrophic plan, children can get an annual eye exam and a set of glasses at no additional charge, and the deductible does not apply. A Kaiser catastrophic plan may cover some additional health services, including acupuncture and chiropractic care, but it varies with the specific plan. Some services and medications may require prior authorization, meaning you may have to try other therapies before the insurer covers your desired treatment.

Dental care is not included; if you’d like dental coverage, you’ll have to purchase a separate policy.

Kaiser Permanente’s catastrophic plans are not available everywhere. They are only available in parts of the following states: California, Colorado, Georgia, Hawaii, Maryland, Oregon, Virginia, and Washington, plus Washington, D.C. Their NAIC complaint ratio for 2021 is 0.49, below the industry average.

Kaiser Permanente stands out from other insurers because of its telehealth options. You can access healthcare professionals from your own home and get help the same day you request it for some of the options.

Best Short-Term Coverage : Pivot Health

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If you need short-term insurance to cover a gap until other coverage begins, Pivot Health is the best option of those we reviewed. It allows you to get multiple quotes by filling out one simple form, and telehealth is included with all plan options.

Pros

Receive coverage the day after you apply
Plans available with PPO networks
May be cheaper than other plans

Cons

Cheaper plans have a higher-than-average deductible.
There are caps on total coverage.
Enrollment fees apply.

Pivot Health is a short-term insurance marketplace that connects customers to policies underwritten by insurers like The North River Insurance Company and Companion Life.

Short-term coverage differs from catastrophic health plans sold through the health insurance marketplace, and they tend to be much less expensive.

While other plans make you wait weeks before you’ve covered, Pivot Health’s plans are generally effective the day after you apply for insurance. Most plans are PPO networks, so you can choose your own healthcare provider and see specialists without a referral.

Because short-term coverage is separate from catastrophic plans offered on Healthcare.gov, they have a higher deductible and can deny pre-existing conditions. Depending on the plan you choose, the deductible can be as high as $10,000 per month. There are also caps on how much your insurance company will cover; for lower-tier plans, the limit is $100,000.

In addition to the monthly premium, you’ll also have to pay an enrollment fee of $19.95. Because Pivot Health is an insurance marketplace, it’s not included in the NAIC’s complaint index.

Pivot Health is best for people who have a temporary lapse in coverage and are looking for affordable short-term insurance. With low premiums, it can help you save money and still protect against major medical expenses.

What Is Catastrophic Health Insurance?

Catastrophic health insurance plans are designed for people who are under 30 or meet hardship requirements. These plans have low monthly premiums but very high deductibles. As of 2022, the max deductible and out of pocket expenses on catastrophic plans is $8,700. You pay for most routine medical expenses on your own, but the plans provide coverage in serious emergencies that require significant medical attention.

Catastrophic plans cover the same essential health benefits as other Health Insurance Marketplace plans, covering preventative services at no additional cost. You're also entitled to three primary care physician visits if you purchase a catastrophic plan through the Health Insurance Marketplace.

Who Should Get Catastrophic Health Insurance?

Catastrophic health insurance policies are inexpensive, but they’re not for everyone. They’re best for people who are young and healthy without ongoing health conditions that need regular care. If you cannot afford a traditional health insurance plan, catastrophic plans are a low-cost option that provides coverage in case of accidents or serious illnesses that you’d otherwise have to pay for yourself.

If you have other options—such as employer-offered coverage or a traditional plan through the Affordable Care Act—those insurance plans will offer more comprehensive coverage with much lower deductibles.

If you have any chronic health conditions and require regular doctor visits or treatment, catastrophic health plans will be costly since the deductible is so high. You would likely be better off with a bronze or silver plan purchased through the Health Insurance Marketplace.

What Is the Difference Between Major Medical and Catastrophic Coverage?

Major medical insurance is a term used to describe plans sold on the Health Insurance Marketplace that meet the Affordable Care Act’s requirements. While major medical plans have different tier levels—with different premiums and deductibles—they all cover the same preventative services and essential benefits.

Catastrophic plans are also sold through the Health Insurance Marketplace but have very high deductibles compared to major medical plans. You’ll typically pay out of your own pocket for routine medical care; a catastrophic plan only provides coverage once you’ve paid thousands and met the deductible.

Catastrophic plans aren’t available to everyone; there are age and hardship restrictions.

How Can I Get Catastrophic Health Insurance?

You can purchase catastrophic health insurance plans through the Health Insurance Marketplace at Healthcare.gov, or you can purchase directly from a private insurance company.

To purchase a plan through Healthcare.gov, you need to be under 30. If you are over 30 and think you qualify for a catastrophic plan due to a hardship, you must apply for an exemption before selecting a plan. Applying through Healthcare.gov allows you to compare plans from multiple insurers so you can pick the best plan for your needs.

If you purchase directly through a company, you may purchase short-term insurance—temporary coverage against major accidents or illnesses—without having to meet certain criteria or qualifying for an exemption. However, short-term plans don’t cover pre-existing conditions.

What Does Catastrophic Health Insurance Cost?

The average cost of a catastrophic health plan is $195 per month, but your cost will depend on your location, age, and insurer. That amount is significantly less than what a bronze plan purchased through the Health Insurance Marketplace would cost. As of 2022, the lowest-tier bronze plan costs $329 per month, on average.

Short-term insurance plans are another option that can be inexpensive since they’re meant as temporary coverage and don’t cover pre-existing conditions. Short-term policies typically cost around $124 per month.

How We Chose the Best Catastrophic Health Insurance

We researched and evaluated 12 different insurance companies that offer catastrophic and short-term catastrophic plans. We reviewed each company's plan options, provider networks, cost, additional benefits, and NAIC complaint ratio. Companies that operated in less than three states were eliminated from contention. We ultimately chose four companies that were readily accessible, had quality customer service, and offered an extensive network, so policyholders don't struggle to find care.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

Blue Cross Blue Shield. "Blue Facts."
National Association of Insurance Commissioners. "Oscar Ins Co National Complaint Index Report."
National Association of Insurance Commissioners. "Kaiser Permanente Insurance Co National Complaint Index Report."
Insure.com. "Catastrophic Health Plans Offer Low Costs With Comprehensive Insurance Coverage."
Kaiser Family Foundation. "Average Marketplace Premiums by Metal Tier, 2018-2021."
CMS.gov. "Fact Sheet: Short-Term, Limited-Duration Insurance Proposed Rule."