clipped from: harborfi.typepad.com Catastrophic coverage heath insurance is offered by most medical companies. This coverage is different from other forms of coverage in that the plan provides coverage only when a person requires a hospital stay or if their medical expenses rise above the deductible. These plans offer lower monthly premiums, but higher deductibles. For people who do not earn much, are younger and not prone to illness, or for older people who are on a fixed income, this type of plan might be the one for them.