What is a high deductible health plan (HDHP)?

A high deductible health plan (HDHP) is a type of health insurance that is available in California and many other states. It is an insurance plan that requires a higher out-of-pocket payment from the insured before the insurance company begins to cover the cost of medical services. The deductible is the amount of money that the insurance company requires the insured to pay before the insurance company will begin to pay for medical services. In general, HDHPs have a higher deductible and, therefore, lower monthly premiums than other health insurance plans. The deductible may range from $1,400 to $6,900 for an individual and $2,800 to $13,800 for a family, depending on the plan. After the insured pays the annual deductible, the insurance company typically pays a percentage of the remaining medical costs. In California, the insurance company is required to cover at least 80% of the remaining costs for an HDHP. There are benefits to having a HDHP. Since there is a higher deductible, the monthly premiums tend to be lower, making it more affordable for those with a limited budget. It also encourages people to be more mindful of their health and seek preventive care, as they may be more likely to take advantage of the lower cost of preventive care than services that come with a larger price tag. When making a decision about health insurance, it is important to consider the options available and always weigh the pros and cons. High deductible health plans can be a good choice for those with a limited budget, but it is important to understand the different features of the plan before enrolling.

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What is a high deductible health plan (HDHP)?

What is a high deductible health plan (HDHP)?

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