high-deductible health plan (HDHP)


A health insurance policy that requires covered individuals to pay a high out of pocket cost for medical care (usually over $1000) before any costs will be paid by the plan. Such plans have lower premiums than traditional health insurance policies. This makes them attractive to employers seeking to manage the cost of providing workplace benefits. The IRS requires participation in a high-deductible health plan for employees and self-employed individuals who wish to use a tax-exempt health savings account to defray the cost of medical care.

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A high-deductible health plan can spell doom for many people due to the huge prices they have to pay out of pocket to receive care.

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I have having to pay so much just for a check-up at the doctor's office, but a high-deductible health plan in is the only insurance my job offers.

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Fred wasn't happy about the out of pocket costs of his high-deductible health plan, but he did like the tax savings of the health savings account he paired it with.

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