High-Deductible Health Plan (HDHP)
What Does 'High-Deductible Health Plan (HDHP)' Mean?
A high-deductible health plan (HDHP) is a type of health insurance with a high out-of-pocket deductible, usually with a low monthly premium.
More Information
A high-deductible health plan (HDHP) is a health insurance policy with a deductible above a specific threshold. This amount is updated each year and depends on age.
With an HDHP, you'll pay a higher deductible than regular health insurance plans. A deductible is the amount you're responsible for paying toward care before your insurance benefits cover costs. You can learn more with our article that explains current HDHP requirements.
These plans typically have lower monthly premiums because of the high deductibles. So, you'll save each month on your premium, but you may pay more when you need medical care.
High-deductible health plans work well with health savings accounts (HSAs). Many people benefit from the low monthly premium and use their tax-free HSA to cover deductibles.