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.

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References in periodicals archive ?

8 million high deductible health plans, which accompany HSAs to provide coverage for catastrophic problems, have been sold, Celent estimated that there are only 1.

Growth and change foreseen for HSAs

High Deductible Health Plans, however, have not been an option favored by employees.

Health savings accounts: a way to help pay for health care cost

Enrollment in high deductible health plans and CDHPs have leveled off, according to research by the Employee Benefit Research Institute.

Government dangles CDHP carrot

What high deductible health plans look like: findings from a national survey of employers, 2005.

Consumer-directed health care: a panacea or the wrong prescription?

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.

Catastrophic coverage first: provide protection, then convenience, when considering health-care options

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.

Health savings accounts = debt?

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.

Making healthy choices: consumer-driven health plans allow insureds to be more involved in decisions concerning health care