Catastrophic illness

A catastrophic illness is a severe illness requiring prolonged hospitalization or recovery. Examples include^[1] cancer, heart attack or stroke. These illnesses usually involve high costs for patients and health insurance companies and may incapacitate the person from working, creating a financial hardship. They are the type intended to be covered by high-deductible health plans. Research indicates that the unusual economic environment of the delivery of catastrophic illness care encourages the use of innovative therapies.^[2] Medicare contains a benefit for catastrophic illness.^[3]