State RegulationsNY specificDifficulty 3/5
Under the Affordable Care Act, who is generally permitted to enroll in a catastrophic health plan?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the Affordable Care Act, catastrophic plans are reserved for a narrow group: younger adults below the statutory age cutoff and certain people whose circumstances qualify for a hardship or affordability exemption from the coverage requirement. The plans are not open to the general exchange population, and they are individual products rather than an employer purchasing option. Older adults approaching Medicare eligibility fall outside the eligible group.
Why the other options are wrong
- A) Eligibility is restricted; catastrophic plans are not open to every exchange shopper.
- B) People eligible for Medicare are not the target group; the plans serve younger adults and exempted individuals.
- C) Catastrophic plans are purchased by individuals, not by employers covering their workers.
Memory hook
Catastrophic is a young person's plan - or an exempted person's.