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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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 ?
The article looks at a Tennessee family with kids that opted for direct primary care instead of a high-deductible health plan. Their monthly fee of about $150 covers basic checkups, same-day or next-day appointments, and the ability to get medications and lab tests at or close to wholesale prices.
Also, insurance companies offer many different plans, and doctors that are in an insurer's preferred provider organization may not be in its high-deductible health plan network.
With the company's high-deductible health plan, in addition to the employer's share of premium, the company deposits $ 1,000 for an individual and $2,000 for a family into a Health Savings Account (HSA) to assist in covering the deductible.
In order to have access to an HSA, you generally must be covered under a high-deductible health plan, or HDHP, and have no other form of health coverage.
Some employers offer plans that combine a pretax savings account with a high-deductible health plan (HDHP) to establish a health savings account (HSA).
A high-deductible health plan eligible for use with a medical savings account will have to have an individual deductible from $2,250 to $3,350 and an annual out-of-pocket maximum of $4,500 or less.
HSAs require three things: A high-deductible health plan (HDHP), a bank/ custodian account and an administrator.
Anyone else enrolled in plans with those deductibles were in the high-deductible health plan group: 11% of participants.
A high-deductible health plan linked with health savings accounts reduced health spending initially and over a four-year period, according to new research from the Employee Benefit Research Institute.
The global technology company was able to contain health care costs in part because it had implemented an optional high-deductible health plan, in which employees spent an average of 35 percent less than those enrolled in the traditional plans offered by Intel.
An HSA can only be established for the benefit of an eligible individual who is covered under a high-deductible health plan (HDHP).

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