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 ?
TRADITIONALLY, consumers in, well, traditional plans tend to be way more satisfied with their health plan than others with less traditional plans, such as a high-deductible health plan or a consumer-driven health plan.
A high-deductible health plan linked with health savings accounts reduced health spending initially and over a four-year period, according to new research from the Employee Benefit Research Institute.
An HSA works with a high-deductible health plan that provides comprehensive health care coverage at a lower cost.
Annual limitations on deductibles for individual coverage under a high-deductible health plan are $3,050, while family coverage limits are $6,150.
The employer allocated an additional $500,000 to help fund the employees' health savings accounts, putting in $600 for a single employee and $1,200 for each family Employees attended meetings to learn how the high-deductible health plan and health savings account would benefit them.
The bull of health plans' business remains in managed care, and they realize that when they do a consumer-directed strategy that it's not a narrow, new consumer-directed health plan or a high-deductible health plan strategy, but it's about the entire company and how what's traditionally been a B2B [business-to-business] company makes the transition to a B2C [business-to-consumer] company with a two-step sale through the employer to the individual," Knott said.
And considering the premium on a high-deductible health plan is significantly less, employers will not have to spend as much on health insurance policies.
The survey found that 20% of employers that offer health insurance currently provide a high-deductible health plan option.
An HSA program has two parts: a high-deductible health plan (which usually costs less than other health plans) and a tax-advantaged, portable savings account for payment of current medical expenses which builds like a medical individual retirement account (IRA).
The HSA can be paired with a qualified high-deductible health plan (a minimum of $1,000 individual, $2,000 Family).
GIT will offer a high-deductible health plan starting Jan.

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