What is a high deductible health plan (HDHP)?
1. What is a “high-deductible health plan” (HDHP)? . Specifically, for single coverage, a HDHP has an annual deductible of at least $1,100 and annual out-of-pocket expenses required to be paid (deductibles, co-payments and other amounts, but not premiums) not exceeding $5,650. For family coverage, a HDHP has an annual deductible of at least $2,200 and annual out-of-pocket expenses required to be paid not exceeding $11,000. In the case of family coverage, no matter which family member or members incur expenses, no amounts are payable from the HDHP until the family has incurred annual covered medical expenses in excess of the minimum annual deductible. Amounts are indexed for inflation. The exceptions are for preventive care. 2. What are the special rules for determining whether a health plan that is a network plan meets the requirements of a HDHP? A network plan is a plan that generally provides more favorable benefits for services provided by its network of providers than for 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, the amounts increase to $1,100 and $2,200, respectively. 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 co pays & coinsurance) for non-network services. For 2009, the maximum can you can contribute to a Health Savings Account is a $3,000 for single coverage and $5,950 for family. For 2009 the minimum deductible is $1,150 (self-only coverage) or $2,300 (family cove
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. In order to qualify to open an HSA, your HDHP minimum deductible must be at least $1,000(self-only coverage) or $2,000(family coverage). For 2006, the amounts increase to $1,050 and $2,100, respectively. The annual out-of-pocket (including deductibles and co-pays) for 2005 cannot exceed $5,100 (self-only coverage) or $10,200 (family coverage). For 2006, these amounts increase to $5,250 and $10,500, respectively. HDHPs can have first dollar coverage (no deductible) for preventive care and apply higher out-of-pocket limits (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?
