Currently, catastrophic coverage only is available in the marketplace to people under age 30 and to those who do not need to meet the individual mandate either because the cost of coverage exceeds eight percent of household income or they qualify for a hardship exemption. Catastrophic plans generally will cover three annual primary care visits and preventive care at no cost, but no other charges until the deductible – which typically will be $6,350 – is met. Once the deductible is met, all essential health benefits are covered in full.
On December 19, 2013, HHS announced that individuals who have been unable to renew their current policy, and who believe that the options in the marketplace cost more than the cancelled coverage, will be eligible for a hardship exemption. Eligibility for the hardship exemption will then make the person eligible for a catastrophic policy (which is estimated to cost about 20 percent less than a policy that includes essential health benefits). Individuals who wish to purchase a catastrophic policy will need to provide a copy of their cancellation notice and complete a hardship exemption form. That form is available in the HHS Bulletin.
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