What is a high deductible health plan (HDHP)?
A High Deductible Health Plan (HDHP) is a health insurance plan with a large minimum deductible. To qualify as an HDHP, the plan must have a minimum deductible of $1,150 for self-only coverage or $2,300 for family coverage. The plans out-of-pocket expenses, including deductibles and co-pays, cannot exceed $5,800 for self-only coverage or $11,600 for family coverage. However, an HDHP may have no deductible for preventive care and can charge higher co-pays and co-insurance fees for non-network services.
You must have an HDHP if you want to open an HSA. Sometimes referred to as a “catastrophic” health insurance plan, an HDHP is an inexpensive health insurance plan that generally doesn’t pay for the first several thousand dollars of health care expenses (i.e., your “deductible”) but will generally cover you after that. Of course, your HSA is available to help you pay for the expenses your plan does not cover. For 2008, in order to qualify to open an HSA, your HDHP minimum deductible must be at least $1,100 (self-only coverage) or $2,200 (family coverage). The annual out-of-pocket (including deductibles and co-pays) for 2008 cannot exceed $5,600 (self-only coverage) or $11,200 (family coverage). HDHPs can have first dollar coverage (no deductible) for preventive care and apply higher out-of-pocket limits (and copays & coinsurance) for non-network services.
The federal regulations detail the HDHP limits each year. For 2009, the minimum deductible amount for an HDHP is $1,150 for self-only coverage and $2,300 for family coverage. In addition, the maximum out-of-pocket amount for self-only coverage is $5,800 and $11,600 for families. A high deductible health plan typically offers a higher deductible in return for generally lower premiums. For more detail, please contact your insurance provider.
You must have an HDHP if you want to open an HSA. Sometimes referred to as a “catastrophic” health insurance plan, an HDHP is an inexpensive health insurance plan that generally doesn’t pay for the first several thousand dollars of health care expenses (i.e., your deductible) but will generally cover you after that. Of course, your HSA is available to help you pay for the expenses your plan does not cover. For 2009, in order to qualify to open an HSA, your HDHP minimum deductible must be at least $1,150 (self-only coverage) or $2,300 (family coverage). HDHPs can have first dollar coverage (no deductible) for preventive care and apply higher out-of-pocket limits (and co pays & coinsurance) for non-network services.
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?
