High-Deductible Health Plan - HDHP

What is a 'High-Deductible Health Plan - HDHP'

A health insurance plan with a high minimum deductible that the insurance holder must pay for medical expenses before insurance coverage kicks in. The minimum deductible for a plan to fall into the category of an HDHP varies each year. In 2015, it was $1,300 for individuals and $2,600 for families.

BREAKING DOWN 'High-Deductible Health Plan - HDHP'

These health plans became more common when the new health savings account (HSA) legislation was signed into law in 2003. In order to open an HSA account, an individual must first have an HDHP. These high-deductible health plans are thought to lower overall healthcare costs by forcing individuals to be more conscious of medical expenses. The higher deductible also lowers insurance premiums, making health coverage more affordable.

RELATED TERMS
  1. Medical Cost Ratio

    A comparison of a health insurance company's healthcare costs ...
  2. Medical Underwriting

    The process of assessing the risk associated with providing health ...
  3. Commercial Health Insurance

    A type of health insurance that covers medical expenses and disability ...
  4. Minimum Essential Coverage

    The type of health insurance policy an individual needs to meet ...
  5. Insurance Coverage Area

    The geographic region in which an insurance policy’s benefits ...
  6. Blanket Medical Expense

    An insurance policy which provides coverage for all medical expenses ...
Related Articles
  1. Personal Finance

    How to Qualify to Contribute to an HSA

    You can only use a health savings account if you have a high-deductible health insurance plan and no other health insurance, including Medicare. If you have a catastrophic health insurance plan, ...
  2. Personal Finance

    HSA Strategies for Different Life Stages

    How to best use an HSA, if at all, is determined first by whether a high-deductible health plan makes sense for you. That depends on the stage of life you’re in as well as the state of ...
  3. Personal Finance

    Rules For Having A Health Savings Account (HSA)

    Do you qualify? What does it cover? How to see if it makes sense to sign up for a High-Deductible Health Plan with a Health Savings Account.
  4. Personal Finance

    Don't Overpay for Health Insurance This Year

    Health insurance open enrollment starts Nov. 1. Choosing the right ACA plan (or plan at work) takes figuring out how often you actually go to the doctor.
  5. Personal Finance

    HSA Contribution Limits in 2016

    Find out the 2016 contribution and out-of-pocket limits for health savings accounts and why HSAs are still viable options as health care plans.
  6. Investing

    Is It Worth Switching Insurance to Get an HSA?

    We crunch the numbers to see if the (future) benefits of a Health Savings Account outweigh the (present) price of a high-deductible health insurance plan.
  7. Personal Finance

    High-Income Benefits From A Health Savings Account

    Health savings accounts are the only tax break offering triple benefits. Here's a look at how they work.
  8. Personal Finance

    Pros And Cons Of A Health Savings Account

    A health savings account offers a way to save while paying for healthcare expenses.
  9. ETFs & Mutual Funds

    Health Savings Accounts (HSAs)

    What HSAs are: Taxed-advantaged savings accounts used to pay for qualified health-care expenses. Pros: Tax-deductible contributions; tax-free withdrawals; tax-free earnings; funds roll over; ...
  10. Personal Finance

    The Bottom Line

    If you can afford to take a chance on a higher health insurance deductible, an HSA can help you keep your medical costs down. If you suspect, by choosing a high-deductible health plan, that your ...
RELATED FAQS
  1. What is the range of deductibles offered with various health insurance plans?

    Explore the wide range of deductibles available on various health insurance plans, and learn factors to consider when selecting ... Read Answer >>
  2. How do I know if I qualify to open a HSA (Health Savings Account)?

    The Health Savings Account (HSA) was established as part of the Medicare Prescription Drug, Improvement, and Modernization ... Read Answer >>
  3. Is it more important to have a low deductible or a low premium?

    Explore the balancing act that exists between insurance deductibles and premiums, and learn the primary factors to consider ... Read Answer >>
  4. What are catch-up contributions for Health Savings Accounts (HSAs)?

    Learn about Health Savings Accounts (HSAs) and how an eligible individual of age 55 or older can make additional catch-up ... Read Answer >>
  5. What are the requirements to be able to contribute to an HSA?

    Health Savings Accounts (HSA) can be used by individuals covered by a high-deductible health plan to save for health care ... Read Answer >>
  6. How is the deductible I paid for my insurance claim treated for tax purposes?

    Find out how your health insurance deductible is treated for tax purposes and under what conditions you may be able to deduct ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center