What does catastrophic coverage provide in Medicare?

Catastrophic coverage in Medicare is specifically designed to protect beneficiaries from high out-of-pocket costs. Once a beneficiary has reached a certain threshold of spending on covered services, catastrophic coverage kicks in to help cover the additional costs. This safety net ensures that individuals do not face overwhelming financial burdens due to significant medical expenses.

While it is essential to understand the purposes of other types of coverage in Medicare, such as preventive care coverage or standard coverage provisions, catastrophic coverage's primary focus is to safeguard against exorbitant outlays, making it indispensable for those who encounter extensive healthcare needs. This feature is particularly beneficial for individuals with low or moderate incomes, as it provides a layer of financial protection against unexpected healthcare costs that can lead to hardship.