HDHP

A High Deductible Health Plan (HDHP) is a health insurance plan characterized by lower monthly premiums and higher deductibles than traditional plans. HDHPs are designed to encourage individuals to manage their healthcare costs more effectively. To qualify as an HDHP, a plan must meet specific minimum deductible and maximum out-of-pocket expense limits set by the IRS. Many HDHPs are compatible with Health Savings Accounts (HSAs), allowing users to save tax-free funds for medical expenses. Understanding the benefits and potential drawbacks of HDHPs is crucial for making informed healthcare decisions and ensuring adequate financial protection