What is the primary purpose of catastrophic health insurance?

The primary purpose of catastrophic health insurance is to protect against very high medical costs while maintaining low premiums. This type of insurance is designed for individuals who want to be safeguarded against significant, unforeseen medical expenses—such as those arising from serious accidents or illnesses.

Catastrophic plans typically have high deductibles, meaning that the insured individual will pay out of pocket for most routine medical expenses until reaching the deductible amount. Afterward, the insurance kicks in to cover the costs of major medical events. This makes catastrophic plans an attractive option for younger, healthier individuals who do not frequently require medical care but want coverage against devastating financial setbacks.

In contrast, the other options represent different aspects of health insurance. Covering routine medical expenses is not the focus of catastrophic insurance, as these plans are not intended for regular care. Comprehensive healthcare coverage usually involves broader protections than what a catastrophic policy offers, encompassing various types of routine and preventive services. Finally, while some catastrophic plans may include limited preventive care services, the primary function of these plans is not to support such services but rather to provide a safety net against high costs.