High Deductible Health Plans (HDHPs)

In recent years, as individuals have become more responsible for their healthcare, there has been an increase in high deductible health plans (“HDHPs”) offered by insurers. A deductible is the amount of healthcare spending that the individual is responsible for paying themselves before the health insurance kicks in and starts covering payments. Generally, an HDHP only covers preventive services, and you pay for everything else until you pay your full deductible. Since these plans have higher deductibles (a negative), the offsetting benefit is that they usually have lower premiums (a positive as it’s a lower monthly expense for you). If you don’t think that you’re likely to incur a lot of medical expenses, this may be a good option for you. However, if you are injured you will have higher bills to pay before your insurance coverage kicks in. You can buy an HDHP through your state’s health exchange or off-exchange.