What is a high deductible health plan (HDHP)?
For 2008, a high deductible health plan (HDHP) is a health plan with a minimum deductible amount of $1,100 for self-only coverage and $2,200 for family coverage and for 2009, the minimum deductible for self-only coverage is $1,150 and $3,000 for family coverage. In addition, for 2008 the maximum annual out-of-pocket amount cannot exceed $5,600 for self-only coverage and $11,200 for family coverage. For 2009 the maximum annual out-of-pocket amount cannot exceed $5,800 for self-only coverage and $11,600 for family coverage. Please contact your tax advisor if you have additional questions.
(Back to top) A deductible is the amount of dollars that you must pay for covered healthcare expenses before your health plan will provide coverage. A high deductible health plan (HDHP) is an insurance plan that has a higher than average deductible. These types of plans also have annual limits on how much you have to pay out-of-pocket in the form of deductible, copayments and coinsurance fees.
• For individual coverage, it has a minimum deductible of $1,100 a year and an annual maximum out-of-pocket expense (including deductibles and co-pays) of $5,500 • For family coverage, it has a minimum deductible of $2,220 a year and an annual maximum out-of-pocket expense (including deductibles and co-pays) of $11,000
An HDHP is a plan that generally doesn’t pay for the first several thousand dollars worth of health care expenses. The University’s Health Plan B qualifies as an HDHP. In 2008 the law states that the deductible be at least $1,100 for employee only coverage and $2,200 for family coverage (family is defined as any coverage other than employee only for HDHP purposes). The annual out-of-pocket maximum cannot exceed $5,500 for employee only coverage or $11,000 for family coverage.
Generally, an HDHP is a health plan that satisfies certain requirements with respect to deductibles and out-of-pocket expenses. Specifically, for self-only coverage, an HDHP has an annual deductible of at least $1,000 and annual out-of-pocket expenses require to be paid (deductibles, co-payments and other amounts, but not premiums) not exceeding $5,000. For family coverage, an HDHP has an annual deductible of at least $2,000 and annual out-of-pocket expenses required to be paid not exceeding $10,000. In the case of family coverage, a plan is an HDHP only if, under the terms of the plan and without regard to which family member or members incur expenses, no amounts are payable from the HDHP until the family has incurred annual covered medical expense in excess of the minimum annual deductible. Amounts are indexed for inflation. A plan does not fail to qualify as an HDHP merely because it does have a deductible (or has a small deductible) for preventative care (e.g., first dollar coverag
Related Questions
- Can an individual who is not covered by a high deductible health plan HDHP for the whole year contribute the maximum annual limit established by the IRS?
- Do I have to be enrolled in a High Deductible Health Plan (HDHP) to contribute into an HSA (Health Savings Account)?
- How does my High Deductible Health Plan (HDHP) Work?
