What is a high-deductible health plan (HDHP)?
What makes an HDHP plan unique?
- Most commonly a type of PPO plan that has a high deductible (over the government defined limit).
- Enrollees will have a large deductible amount they will need to pay out of pocket before the regular insurance coverage kicks in (with exceptions like preventive care, etc.). Learn more about copays for HDHPs.
- HDHPs may be HSA-compatible, allowing enrollees in the plan to also use an HSA to pay for many health-related expenses with pre-tax dollars.
- Consumer Driven Health Plans (CDHPs) are very similar to HDHP plans and are also compatible with HSAs, HRAs, and FSAs.
What should I know about HSA-compatibility and HDHP plans?
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