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 ?
As healthcare costs continue to consume a higher percentage of employer and household budgets, more employers are adjusting their benefit offerings to include high deductible health plans.
High Deductible Health Plans, however, have not been an option favored by employees.
Enrollment in high deductible health plans and CDHPs have leveled off, according to research by the Employee Benefit Research Institute.
What high deductible health plans look like: findings from a national survey of employers, 2005.
Increasing numbers of employers are finding that high deductible health plans can provide significant premium savings over traditional health plans, and many employers automatically deposit this savings into Health Savings Accounts for their employees to pay for first dollar health care.
Health savings accounts (HSAs) coupled with high deductible health plans have potential pitfalls, especially for families with low incomes or individuals with chronic health conditions, who are at greater risk of accruing burdensome medical debts and facing barriers to needed health care," said Commonwealth President Karen Davis.
Examples of CDHs include Health Savings Accounts (HSA), Health Reimbursement Arrangements (HRA), and High Deductible Health Plans (HDHPs).
The survey focused on the changes employers are making to their benefit programs such as offering more high deductible health plans and how they are educating their employees about the Affordable Care Act (ACA) and health insurance marketplace (exchanges).
Health savings accounts coupled with high deductible health plans have potential pitfalls, especially for families with low incomes or individuals with chronic health conditions, who are at greater risk of accruing burdensome medical debts and facing barriers to needed health care," Commonwealth Fund President Karen Davis said in a statement.
Answering the desire of members with certain cardiovascular risk factors to take charge of their health insurance, Premera Blue Cross announced today it will begin offering first-dollar coverage in 2007 on more than 130 generic medications used to reduce the risk of complications associated with high cholesterol and high blood pressure for members enrolled in High Deductible Health Plans (HDHPs) qualified for use with Health Savings Accounts (HSAs).
1 /PRNewswire-FirstCall/ -- First Niagara has introduced Health Savings Accounts (HSA), a tax-advantaged bank savings account for those individuals covered under High Deductible Health Plans.
2 will integrate with HSA custodians so payors can offer consumers a single enrollment process for HSA-eligible High Deductible Health Plans and HSA accounts.

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