What is High-Deductible Health Plan (HDHP)?
Insurance glossary entry on BeCovered.ai for the term "High-Deductible Health Plan (HDHP)": A qualified plan design with higher deductibles that can pair with a Health Savings Account (HSA). Scope: plain-language meaning for coverage discussions; confirm definitions on your policy forms.
A qualified plan design with higher deductibles that can pair with a Health Savings Account (HSA).
Understanding High-Deductible Health Plan (HDHP)
HDHPs shift upfront cost to the member through deductibles in exchange for lower premiums and tax-advantaged savings. IRS rules define minimum deductibles and out-of-pocket caps for HSA eligibility each year.
Examples
- Employer offers HDHP + employer HSA contribution strategy.
- Young healthy enrollee funds HSA for future expenses.
Common Questions About High-Deductible Health Plan (HDHP)
Is every high deductible plan HSA-eligible?
No—verify IRS qualification, embedded deductibles, and disqualifying coverage like certain FSAs or TRICARE.
Do preventive services apply to deductible?
ACA preventive services are covered without cost-sharing in-network for compliant plans; verify non-preventive coding errors.
Related Insurance Types
Related Terms
Copay (Copayment)
A fixed amount you pay for a healthcare service at the time of the visit.
Coinsurance
The percentage of costs you share with your insurance company after meeting your deductible.
Deductible
The amount you pay out of pocket before your insurance coverage kicks in.
Out-of-Pocket Maximum
The most you'll pay for covered healthcare services in a plan year, after which insurance pays 100%.