What is a high-deductible health plan (HDHP)?

A high-deductible health plan (HDHP) is a medical insurance plan with a high deductible (over the government defined limit). HDHPs may be compatible with a health savings account (HSA).

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?

• An HDHP does not guarantee that your employer offers an HSA, only that they can.
• Not all HDHPs are HSA-compatible. A deductible over the annual limit does not make it HSA-compatible by default; HDHPs must be established as HSA-compatible with the carrier.