What is a High Deductible Health Plan (HDHP)? | Anthem (2024)

FAQs

What is a High Deductible Health Plan (HDHP)? | Anthem? ›

A high-deductible health plan (HDHP) is a type of health insurance that can offer lower monthly premiums. You may want to understand how HDHPs work, the pros and cons of the plan depending on your situation, and how a health savings account (HSA) can be funded with pre-tax dollars to pay for medical expenses.

Save for your deductible

You will have more than 60% of this amount saved in your HSA. Per IRS guidelines in 2025, an HDHP is a health insurance plan with a deductible of at least $1,650 if you have an individual plan or a deductible of at least $3,300 if you have a family plan.

High Deductible Health Plan (HDHP) health plan that combines high deductible insurance and a funding option to pay for patients out of pocket expenses up to the deductible. lower premiums and higher deductibles than a traditional health plan.

A High Deductible Health Plan (HDHP) is a health plan product that combines a Health Savings Account (HSA) or a Health Reimbursem*nt Arrangement (HRA), traditional medical coverage and a tax-advantaged way to help save for future medical expenses while providing flexibility and discretion over how you use your health ...

In most cases, your health insurer or your employer can confirm if you are enrolled in a qualifying high-deductible health plan. Oftentimes, this information is included in the declaration page of your policy or in another official correspondence.

For calendar year 2024, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,600 for self-only coverage or $3,200 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not ...

For families, the deductible has to be at least $2,700, with a $13,500 max out-of-pocket. Many high deductible plans actually have a much higher deductible ($5,000-$7,000).

A high-deductible health plan can make sense for you if: You're healthy and rarely get sick or injured. You have no existing medical conditions. You can afford to pay the high deductible out of your pocket if an unexpected medical expense arises.

An HDHP is health coverage with a: Higher annual deductible than typical health plans and. Maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that the taxpayer must pay for covered expenses. Out-of-pocket expenses include copayments and cost sharing but do not include premiums.

Low deductibles are best when an illness or injury requires extensive medical care. High-deductible plans offer more manageable premiums and access to HSAs. HSAs offer a trio of tax benefits and can be a source of retirement income.

What are the disadvantages of a high-deductible health plan? ›

Yes, you can cash out your HSA at any time. However, any funds withdrawn for costs other than qualified medical expenses will result in the IRS imposing a 20% tax penalty. If you leave your job, you don't have to cash out your HSA.

An HDHP can be an HMO, POS, PPO or EPO.

An HDHP is health coverage with a: Higher annual deductible than typical health plans and. Maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that the taxpayer must pay for covered expenses. Out-of-pocket expenses include copayments and cost sharing but do not include premiums.

The IRS defines high-deductible health plans for 2023 as: Individual plans with deductibles of at least $1,500. Family plans with deductibles of at least $3,000.

On the flip side, a traditional PPO plan typically has a lower deductible and lower out-of-pocket maximum than an HDHP. For example, let's say you receive a medical bill for $5,000. Under an HDHP, your deductible might be $3,000.