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Health Plan Categories

Health plans in the United States are divided into four categories based on the actuarial level of the plan and the amount of money they pay out toward healthcare expenses. The categories are Bronze, Silver, Gold, and Platinum.

Bronze plans are designed to cover the “bare minimum" of healthcare costs. On average, they tend to have the lowest monthly premiums with the highest deductibles and out-of-pocket costs.

Silver plans pick up the slack and are on par with the average amount of healthcare coverage. They don’t cover as much as Gold or Platinum plans, but they also have lower monthly premiums and deductibles than those plans.

Gold plans are the most comprehensive and, on average, pay out the highest amount toward healthcare expenses. They have lower out-of-pocket costs and higher monthly premiums than Bronze and Silver plans.

Finally, Platinum plans pay the most toward healthcare plans on average. As a result, they tend to have the highest monthly premiums and the lowest out-of-pocket costs.

In addition, people age 30 and younger are eligible for catastrophic coverage. This is a type of health plan that offers a high-deductible health plan with very low monthly premiums. It is also available to anyone who qualifies for a hardship exemption.

Ultimately, no one health plan category is the "best" for all individuals. When choosing a health plan, it’s important to consider your budget, needs, and lifestyle. Different categories and tiers of plans are intended to meet different needs, so it’s important to pick the plan that best fits yours.

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