Definition Of HDHP

There are many different types of health insurance plans available to families throughout the United States. The type of health care plan you choose should be determined based on what health needs you have and what budget you can dedicate to paying premiums. HDHP health plans are high deductible health plans.

Definition

• HDHP health plans are available to families who wish to have a lower monthly premium for their health insurance. High deductible health plans are offered by most health insurance companies. Health savings accounts are often combined with HDHP plans to help pay the deductibles. The actual deductible amount varies by plan, but is typically higher than $1,000 for individuals or $2,000 for families.

Benefits

• High deductible health plans can provide thorough health care coverage at much lower premiums. On average, HDHP plans have premiums that are 20 to 30 percent lower than health plans with lower deductibles. This is a great option for individuals and families who have minimal health care needs.

Drawbacks

• Because high deductible health plans have higher deductibles than other plans, they can be costly for individuals or families who visit the doctor frequently or who have conditions that require regular care.