High deductible health plan

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High Deductible Health Plan

A form of health insurance in which the policyholder is responsible for all medical expenses up to a relatively high point. For example, a high deductible health plan may require the insured to pay all bills up to $5,000. The trade-off for these plans is a lower premium. High deductible health plans are popular among young people, healthy people and those who only want to have health insurance for emergencies.

High deductible health plan (HDHP).

A high deductible health plan (HDHP) requires substantially higher than average out-of-pocket expenses before the insurance company will start paying for your medical expenses.

However, the premiums for an HDHP are generally lower than the premiums for traditional fee-for-service, participating provider organization (PPO), or a health maintenance organization (HMO) plan.

The HDHP may also pay a larger percentage of your expenses once you have satisfied the deductible. If you have an HDHP, you may be eligible for a health savings account (HSA), which allows you to make tax-free withdrawals to pay for medical care that's not covered by your plan.

Money you put in an HSA or that an employer contributes to your account and that you don't spend for qualified expenses can be rolled over and used in later years.

References in periodicals archive ?
HDHP enrollee heterogeneity has significant implications for future research.
Another question of considerable interest is whether employers can reimburse employees for medical expenses--or provide medical services directly to employees--before the minimum HDHP deductible is satisfied, without compromising the employees' ability to fund an HSA.
What happens to unused HRA funds upon eligibility termination Employees benefit from the stacked design, too, especially the lower premium contributions typically required for the HDHP and the HRA benefit provided by the employer.
Account holders under age 65 must be covered under an HDHP but no other health policy providing any of the same benefits.
Since the HDHP has significantly lower premiums, the employer gets initial cost savings as compared to a standard plan, and this keeps yearly premium increases to a minimum; and
An HDHP is a health plan that satisfies certain minimum annual deductibles and maximum annual out-of-pocket expense requirements under Sec.
The average employer that implemented an HDHP and HSA program has 49 percent of eligible employees enrolled in the HDHP.
The 2012 Report also includes key data points on monthly premiums, employee contributions and benefit detail within PPO, Kaiser, HMO, HDHP (HSA), dental, life, vision, and other employee benefit plans.
In addition to HDHP coverage, the account owner may have accident, disability, dental, vision, long-term care and some other forms of insurance, but cannot otherwise be covered by a non-HDHP plan.
Satisfaction rates for out-of-pocket costs were much higher among those with traditional coverage than among those with either an HDHP or CDHP, though regardless of plan type, satisfaction with out-of-pocket costs was consistently low," Fronstin said.
The organization selected is expected to provide feedback on how other companies have offered an On-site or Near-site clinic alongside a HDHP, and explain how they have handled similar arrangements at other clinics.
Most (59 percent) at least somewhat agree that their HDHP was financially detrimental for themselves and/or their family;