Describe catastrophic coverage in health insurance.

Catastrophic coverage in health insurance is designed to provide protection against very high expenses that arise from severe medical conditions or emergencies. This type of policy generally has lower premiums and is intended for individuals who want to safeguard themselves against the financial risks associated with major health events, such as serious illnesses, accidents, or hospital stays.

Typically, catastrophic plans cover essential health benefits after the insured has paid a high deductible. These plans are particularly useful for younger, healthier individuals who may not anticipate frequent healthcare needs but still want to mitigate the risks associated with unforeseen expensive medical situations. In summary, the emphasis of catastrophic coverage is on providing a financial safety net for catastrophic health events, rather than covering routine medical expenses or preventive care.