Washington Life and Disability Producer Practice Exam 2025 - Free Practice Questions and Study Guide

The primary characteristic of catastrophic plans under the Affordable Care Act is that they feature very low premiums alongside higher deductibles. These plans are designed to provide a safety net for younger and healthier individuals who may not require extensive medical services. By keeping premiums low, these plans make coverage accessible, while the higher deductible means that the insured must cover healthcare costs up to a certain amount before the insurance kicks in. This structure is attractive to those who prefer to manage their healthcare costs more flexibly, anticipating that they may not need regular medical care.

Catastrophic plans also include essential health benefits but primarily serve to protect against significant financial burdens resulting from serious medical events. Understanding this balance of low premiums and higher out-of-pocket costs is essential for consumers considering their health insurance options.