High deductible health plan

(redirected from Hdhp)
Also found in: Acronyms.

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 ?
Self-Only or Family HDHP Coverage: The HSA maximum depends on whether the individual had self-only HDHP coverage or family HDHP coverage.
D's HDHP has a $3,000 deductible, and Ms has a $2,600 deductible.
Many members of HDHPs don't understand how their plans work because they haven't adjusted to the new paradigm of taking on the majority of the "downside risk" that insurance companies historically carried with traditional plans.
Most HDHPs are offered in conjunction with a health savings account (HSA).
Specifically, HDHP patients had significantly fewer inpatient days per 1,000 member months (32 vs.
In a study of nine firms offering at least one tax-advantaged HDHP for the first time in 2006, Lave et al.
Moreover, research has shown that over time, HDHP participation does not increase participants' knowledge and conscientiousness about their health care.
HDHP Type of Contribution Minimum HDHP out-of-pocket coverage limit deductible maximum Self-only $3,350 $1,300 $6,550 Family $6,750 $2,600 $13,100
An interesting component of the study's methodology is that those included in the sampling were not only those who had selected a CDHP over those who had not, but also those who had been enrolled in traditional plans and who subsequently switched to an HDHP.
Be sure that the HDHP meets certain requirements, so participating employees also can have a health savings account (HSA).
To help eliminate barriers to HDHP + HSA adoption, simplify eligible employee census management and streamline the payroll deduction process, employer groups signing up for an HSA Bank's HSA program may elect to add the Tango Health solution.