Are consumers who purchase a Catastrophic plan eligible for financial assistance?

Consumers who purchase a Catastrophic plan are not eligible for financial assistance. This is because Catastrophic plans are designed primarily for younger individuals or those who cannot afford more comprehensive coverage. They offer lower monthly premiums but higher out-of-pocket costs, and they only provide financial assistance for essential health benefits after the insured has spent a certain amount out-of-pocket.

Financial assistance in the form of premium tax credits and cost-sharing reductions is specifically intended for individuals whose income falls within certain limits and who enroll in a Silver plan on the health insurance marketplace. Since Catastrophic plans are considered a more limited option, they do not qualify for this financial help. Consequently, individuals opting for a Catastrophic plan must bear the full cost of the premiums without the benefit of financial assistance, making the correct answer clear in the context of eligibility for financial assistance.