The Centers for Medicare & Medicaid Services (CMS) announced on Thursday it will broaden access to catastrophic health coverage through a new hardship exemption guidance, expected to roll out with the start of open enrollments on Nov. 1.
The exemption, designed as a response to potential premium hikes in 2026 will be available for those who are ineligible for advance payments of the premium tax credit or cost-sharing reductions based on their projected annual household income.
“Through these efforts, more Americans will be able to qualify for catastrophic health coverage based on need, beginning November 1st with the start of open enrollment,” the U.S. Department of Health and Human Services added.
While catastrophic plans typically with lower monthly premiums offer 10 essential health benefits like other marketplace plans, they cover three primary care visits before deductibles kick in, giving Americans a more affordable way to obtain health insurance.
Operators in the ACA marketplace include Centene (NYSE:CNC), Molina Healthcare (NYSE:MOH), UnitedHealth (NYSE:UNH), Oscar Health (NYSE:OSCR), Elevance Health (ELV), CVS Health (CVS), and Cigna (CI).