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.
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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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
With most employers offering HDHPs with an insurance-negotiated provider network, few HDHP enrollees are truly autonomous consumers not covered in pricing arrangements pre-negotiated with insurance plans.
Table 1 shows the average deductibles of the included plans in the pre- and postperiods for the HDHP and Traditional Plan groups.
The increases for HDHP out-of-pocket maximums allow plan sponsors more flexibility when determining potential deductibles.
Self-Only or Family HDHP Coverage: The HSA maximum depends on whether the individual had self-only HDHP coverage or family HDHP coverage.
The proliferation of HDHPs is the most significant trend in higher ed health benefits, says Len Spangher, vice president and senior consultant at Sibson Consulting, which provides HR and benefits consulting to corporations and nonprofits.
For all of 2017, Thas self-only coverage under an HDHP with a $2,000 annual deductible.
(1.) Healthcare.gov, High Deductible Health Plan (HDHP).
A National Bureau of Economic Research study found that newly enrolled HDHP members with median incomes of $125,000 to $150,000 cut back on preventive care, physician office visits and prescription drugs.
A qualified HDHP has a minimum deductible of $1,300 with no first dollar coverages.
The maximum 2015 contribution for eligible individuals with self-only coverage under an HDHP is $3,350, while an eligible individual with family coverage under an HDHP can contribute up to $6,650.
The MMA allows people to establish or contribute to an HSA when they are covered by a high-deductible health plan (HDHP), and the legislation explicitly defines the minimum deductible and the maximum annual out-of-pocket expenditure for a qualifying plan.
One study showed that HDHP participants indiscriminately reduced their use of all care, (5) and another indicated that HDHP participants with chronic conditions moderately reduced their adherence to prescription drug regimens, especially for asymptomatic conditions such as hypertension and high cholesterol.