What is a high deductible health plan (HDHP)?

A High Deductible Health Plan (HDHP) is a type of health insurance that requires the insured to pay a higher deductible before the insurance provider begins to pay for healthcare services. In Delaware, the minimum deductible for a HDHP is $1,400 for an individual and $2,800 for a family. HDHPs are usually paired with a health savings account (HSA). An HSA is a tax-advantaged account that allows you to save money specifically for healthcare expenses. The money you contribute to the HSA is tax-deductible, and any money you withdraw from it for qualifying medical expenses is not subject to taxes. The main benefit of an HDHP is that you will likely pay lower monthly premiums than other types of health insurance. This can make it a great option for those who are generally in good health and don’t need to visit their doctor or use other medical services frequently. At the same time, it’s important to be aware of the risks of having an HDHP. It is important to be prepared to pay a large sum of money for healthcare services, especially if you don’t have enough funds saved in your HSA. Overall, HDHPs can be a financially beneficial option for those looking for health insurance in Delaware. However, it is important to consider all of the risks and benefits before making a decision.

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What is a high deductible health plan (HDHP)?

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