What is a High-Deductible Health Plan (HDHP)?
• With a high-deductible health plan, you have the security of comprehensive health care coverage. Like a traditional plan, you are responsible for paying for your qualified medical expenses up to the in-network deductible; however, the deductible will be higher, and you can use HSA funds to pay for these expenses. After the annual deductible is met, you are responsible only for a portion of your medical expenses through coinsurance or co-payments, just as with a traditional health plan. For 2008, the minimum HDHP deductible by law is $1,100 for individuals and $2,200 for families. For 2008, the maximum out-of-pocket expenses by law (including deductible and co-payments, but not including premiums) cannot exceed $5,600 for individuals and $11,200 for families. The deductible and maximum out-of-pocket expenses are indexed annually for inflation.
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 required 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 expenses 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 not have a deductible (or has a small deductible) for preventive care (e.g., first dollar cov
An HDHP is a type of health insurance that has lower monthly fees and higher annual deductibles than traditional health plans (a minimum of $1,100 for self and $2,200 for family coverage). Choosing an HDHP can reduce the amount you pay in premiums each year, and increase take-home pay. 2008 annual out-of-pocket costs (including deductibles and copays) cannot exceed $5,600 for self coverage and $11,200 for a family plan.
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 $1,050 and annual out-of-pocket expenses required to be paid (deductibles, co-payments and other amounts, but not premiums) not exceeding $5,250. For family coverage, an HDHP has an annual deductible of at least $2,100 and annual out-of-pocket expenses required to be paid not exceeding $10,500. 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 expenses 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 not have a deductible (or has a small deductible) for preventive care (e.g., first dollar cov
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?
- What happens if Im no longer participating in a High-Deductible Health Plan (HDHP)?
- Is the Health Savings Account (HSA) part of the High-Deductible Health Plan (HDHP)?
