What is a high deductible health plan (HDHP)?
A high deductible health plan (HDHP) is a type of health insurance that requires consumers to pay a certain amount of money before their health insurance begins to cover their health expenses. In Florida, an HDHP must have a deductible of at least $1,400 for an individual plan or $2,800 for a family plan. This means that a consumer is required to pay any medical costs up to $1,400 (for an individual) or $2,800 (for a family) before their health insurance begins to make any payments. HDHPs come with lower monthly premiums, but usually higher out-of-pocket costs (like deductibles, copayments, and coinsurance) than other types of health insurance plans. This means that, after paying the required deductible, consumers are still responsible for paying a portion of their medical expenses. Despite the potential for high out-of-pocket costs, HDHPs offer the potential for lower overall health care costs for consumers when compared to traditional health insurance plans. In addition to offering lower premiums, many HDHPs come with other benefits, such as free preventive care services, access to larger networks of health care providers, and the ability to accrue savings in health savings accounts (HSAs). This allows consumers to save money on their health care expenses and build a financial cushion for future medical costs. Overall, HDHPs offer a cost-effective solution for those looking for affordable health insurance coverage in Florida. They offer lower monthly premiums, but require consumers to pay a certain amount of money upfront before their health insurance begins to cover their medical expenses. In addition, many HDHPs offer benefits such as free preventive care, access to larger networks of health care providers, and the ability to save in an HSA.
Related FAQs
What is co-insurance?What is a pre-existing condition?
What is a catastrophic health insurance plan?
What is a health insurance marketplace?
What is a Summary of Benefits and Coverage (SBC)?
What is a lifetime maximum?
What are the benefits of a health savings account?
What is a primary care physician (PCP)?
What is an insurance premium tax credit?
What is a minimum essential coverage?
Related Blog Posts
What You Need to Know About Health Insurance Law - July 31, 2023Top 5 Things You Should Know About Health Insurance Law - August 7, 2023
A Comprehensive Guide to Understanding Health Insurance Law - August 14, 2023
Navigating the Complexities of Health Insurance Law - August 21, 2023
The Ultimate Health Insurance Law Primer - August 28, 2023