Catastrophic health insurance: who qualifies in 2027 and when it makes sense.

Who can buy one.

• People under age 30 on the date coverage starts.
• People 30 and over with a hardship exemption or an affordability exemption from HealthCare.gov.

A 2027 federal rule would have widened hardship eligibility, but that expansion and related 2025 guidance were stayed by a federal court on July 16, 2026 (City of Columbus v. Kennedy II). For now, the traditional rules apply. We check this monthly.

What a catastrophic plan covers.

• The same essential health benefits as other Marketplace plans once you meet the deductible.
• Preventive care at no cost, before the deductible.
• At least three primary care visits a year before the deductible.
• HSA compatibility, starting in 2026.

Catastrophic vs bronze.

The big catch is money. Premium tax credits can be applied to bronze, silver, gold and platinum plans, but not catastrophic ones. If your income is between 100% and 400% of the poverty level, compare the after-credit price of the lowest cost bronze plan before you buy catastrophic. It is often lower, sometimes close to nothing, and bronze deductibles are usually below the catastrophic deductible.

Catastrophic plans make the most sense for people under 30 whose income is above 400% of the poverty level, or who do not qualify for a credit for another reason.

Questions people ask.

Sources.

1. HealthCare.gov, Catastrophic health plans. healthcare.gov
2. CMS, 2027 premium adjustment percentage and maximum out-of-pocket guidance. cms.gov
3. H.R. 1 (Public Law 119-21), sections 71304, 71305 and 71307. congress.gov
4. IRS, The premium tax credit: the basics. irs.gov

General information for Texas and Oklahoma residents, not tax or legal advice. Rules and numbers can change; this page is reviewed on the date shown above. Your eligibility and prices are set by HealthCare.gov or the insurer when you apply.