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 ?
Department of the Treasury expanded preventive care benefits that may be provided by high deductible health plans (HDHPs) for a range of chronic conditions.
The greatest hardships are found in younger survivors.The research, published in CANCER, a peer-reviewed journal of the American Cancer Society, the study also found that among privately insured survivors, those who enrolled in high deductible health plans and did not have health savings accounts were particularly vulnerable to medical financial hardship.Medical financial hardship can encompass three domains: material (such as problems paying medical bills); psychological (for example, worrying about paying medical bills); and behavioral (which might include forgoing or delaying care because of cost).Zhiyuan Zheng, PhD, of the American Cancer Society, and his colleagues analysed information from the 2013 to 2016 National Health Interview Survey.
Taxpayers with High Deductible Health Plans Who Contribute to HSAs: Taxpayers with family coverage under these plans will be allowed to make a slightly larger contribution this year than the Tax Cuts and Jobs Act mandates.
High Deductible Health Plans (HDHPs) now are the preferred commercial insurance offerings, both to employer-sponsored and individually purchased plans.
The enactment of the ACA in March 2010 created substantial uncertainty in the future of high deductible health plans. The ACA established standards that health plans had to meet in order to be considered as "creditable coverage" for the purpose of satisfying the individual mandate, including coverage of a package of "minimum essential benefits" and a minimum actuarial value of 60 percent.
Sun Life senior vice president Scott Beliveau said, "With rising medical costs and an increase in high deductible health plans, we're seeing a growing need for voluntary benefits that help individuals fill the financial gaps."
The program can also be used by people who have health insurance coverage with no prescription benefits, which is common in many health savings accounts (HSA) and high deductible health plans. Additionally, people with prescription coverage can use the program to get a discount on prescription drugs that are not covered by insurance.
The company provides employee benefits plans, including group and individual medical, dental, life, disability and long-term care insurance as well as accidental death, voluntary benefits packages, whole/term life policies and others.Further, the firm recommends approaches to coverage, such as high deductible health plans, health savings accounts and other tax advantage options.Country: USASector: Business and Consumer Services, HealthcareTarget: DSG Benefits GroupBuyer: Digital InsuranceType: Corporate acquisitionStatus: Closed
"Over the past several years, we have seen a significant increase in our clients offering HSA-compliant high deductible health plans, often as an additional option," said David
High deductible health plans are often called consumer-driven plans because they are structured to give consumers more control, responsibility and rewards for actively managing their health care.
The same is true for plans that are compliant with federal rules regarding High Deductible Health Plans and Health Savings Accounts.
While 4.8 million high deductible health plans, which accompany HSAs to provide coverage for catastrophic problems, have been sold, Celent estimated that there are only 1.9 million HSAs that have been established and the product's penetration into the private sector is estimated at only 8%.

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