Washington State Insurance Practice Exam

What type of expenses does catastrophic health insurance typically help cover?

1. Regular doctor visits and check-ups

2. Preventative medical treatments

3. Very high costs after a deductible

4. Minor medical expenses

The correct answer is: Very high costs after a deductible

Catastrophic health insurance is designed specifically to provide financial protection against very high medical costs, typically after the insured has met a significant deductible. This type of coverage is aimed at individuals who want to protect themselves from unforeseen, costly medical emergencies, such as serious illnesses or accidents, rather than covering routine or preventative care. The structure of catastrophic plans emphasizes that they are not meant to cover regular doctor visits, minor medical expenses, or preventative treatments, which are often managed through more standard health insurance plans. By focusing on high-cost situations, catastrophic insurance ensures that once the deductible is paid, the plan will cover a large portion of the costs associated with severe health issues, thereby offering a safety net for unexpected and significant health-related expenses.