Catastrophic health insurance makes no sense as an insurance product since the probability of catastrophic health event costing hundreds of thousands of dollars is so high as one ages. Heart disease and cancer is a given, and that costs hundreds of thousands of dollars to treat, and premature babies are in the millions.

US health insurance is a combination healthcare purchasing agent/second opinion/fraud detection/insurance/tax collector.

A large part of a premium is a tax due to the maximum age rating factor that limits the prices old people pay to 3x or less what young people pay. It is also a tax because the insurer cannot underwrite the insureds, except on the basis of age, tobacco use, and location.