All Collections
What is a High Deductible Health Plan (HDHP)?
What is a High Deductible Health Plan (HDHP)?
Updated over a week ago

A High Deductible Health Plan (HDHP) is a plan with a higher deductible than a traditional insurance plan. The monthly premium is usually lower, but you pay more health care costs yourself before the insurance company starts to pay its share (your deductible). A high deductible plan (HDHP) can be combined with a health savings account (HSA), allowing you to pay for certain medical expenses with money free from federal taxes.

For 2022, the IRS defines a high deductible health plan as any plan with a deductible of at least $1,400 for an individual or $2,800 for a family. An HDHP’s total yearly out-of-pocket expenses (including deductibles, copayments, and coinsurance) can’t be more than $7,050 for an individual or $14,100 for a family. (This limit doesn't apply to out-of-network services.)

A high-deductible health plan might be right for you if:

  • You’re healthy and rarely get sick or injured.

  • You can afford to pay your deductible upfront or within 30 days of receiving a bill for that amount if an unexpected medical expense comes up.

  • You have the means to make significant contributions to an HSA each month.

  • You are healthy and are interested in using an HSA as a way to save or invest money.

If you have any questions or issues you can always reach our support team by

clicking the blue circle bb chat bubble

Located at the lower right corner of your benefitbay™ screen.

Did this answer your question?