HIGH DEDUCTIBLE HEALTH PLANS (HDHP):

High Deductible Health Plans (HDHPs) are a type of health insurance plan designed to reduce monthly premiums by requiring policyholders to pay more out of pocket expenses before their health insurance coverage kicks in. HDHPs typically have lower premiums and a high deductible, usually at least $1,400 for an individual and $2,800 for a family. This high deductible acts as a protection cushion, meaning that you will only incur costs if you are seriously ill or injured. Compared to other health plans, HDHPs offer fewer benefits and limit preventive care. However, they may provide a good option for healthier policyholders, who rarely need to use their health insurance, as well as for those who will benefit from the additional tax savings associated with their higher out of pocket expenses.