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 ?
Contributions to an MSA are subject to an annual limitation (an aggregate of monthly limitations) which is a percentage of the deductible of the required high deductible health plan. For an individual, it is 65% of that deductible and 75% for family coverage.
Given the importance of health care and insurance as a campaign issue, Celent notes that high deductible health plans and HSAs could be affected by the myriad of state and federal proposals being floated.
Because funds paid into a Health Savings Account are immediately vested, an employee can continue to use the resources if s/he changes employment or is no longer covered by a High Deductible Health Plan. If not used, the funds grow tax-free until death or when the employee is eligible for Medicare.
High deductible health plans with low employee premium burdens
Colorado's health insurance community is still getting familiar with the newest wrinkle, the group high deductible health plan (HDHP) that's qualified to be coupled with a Health Savings Account.
To be eligible for an HSA, an employee must be covered by a "high deductible health plan (HDHP)," defined as a health insurance plan with a minimum deductible of $1,000 for individual coverage or $2,000 for family coverage and annual out-of-pocket expenses (including deductibles and co-pays) not exceeding $5,000 for individual coverage or $10,000 for family coverage.
In order to qualify to open a Health Savings Account, you have to be covered by a high deductible health plan. It must be your only health plan.
An eligible individual for HSA purposes is someone who, with respect to any month, (1) is covered under a high deductible health plan as of the first day of the month, and (2) while covered by a high deductible plan, is not covered under any non-high-deductible health plan that provides coverage for any benefit covered under the high deductible health plan.
A child of the consumer directed health care movement, the high deductible health plan was created to give members more financial responsibility for their health care.
The first test cage for the personal health records initiative uses open standards in a system for providers to determine how much a high deductible health plan patient owes for services.
An individual is eligible to make HSA contributions only if he or she is covered by an insured or self-insured "high deductible health plan" (HDHP).
HSAs are an integral part of our overall healthcare strategy, says Gina Campbell, director of benefits for Greatbatch, which offers one healthcare option, a high deductible health plan with an HSA.

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