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High Deductible Health Plan Rules

A high-deductible health plan, or HDHP, appears attractive because the premiums are lower compared to other health insurance plans. This is fine for individuals who do not use health insurance often, but these plans require a large out-of-pocket payout before the insurance begins to help. Set aside enough money to cover the deductible if you are considering an HDHP.

  1. Deductibles

    • For a health insurance plan to be considered a high-deductible plan under the 2010 IRS guidelines, the minimum annual deductible must be at least $1,200 for single coverage and $2,400 for family coverage. The maximum annual deductible and other out-of-pocket expenses should be no more than $5,950 for single coverage and $11,900 for family coverage. This total does not include deductibles and expenses for out-of-network services.

    Preventive Care

    • A HDHP may include preventive care benefits that have no deductible or a lower deductible. Under IRS rules, preventive care can include periodic health evaluations such as annual physicals, routine prenatal and well-child care, immunizations, tobacco cessation programs, obesity weight-loss programs and various screening services.

    Health Savings Accounts

    • You can receive tax benefits from an HDHP by enrolling in a health savings account. With a health savings account, employer contributions in your name are not taxed as income, and earnings and interest on the account are not taxed until used. The funds accumulate year to year and are portable if you leave a job. You can only use the health savings account with an HDHP. You are not eligible for the health savings account if you are also covered by any other health insurance plan. You can have a prescription plan under your HDHP and still be eligible, if the benefit does not begin until you reach the minimum annual deductible.

    Contribution Limit

    • Your HDHP determines how much you can contribute annually to your health savings account. For 2010, you could contribute up to $3,050 for an individual plan and $6,150 for a family HDHP.

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