What is a high deductible health plan (HDHP)?

A high deductible health plan (HDHP) is a type of health insurance policy available in Hawaii that allows individuals to pay a higher deductible than a regular health plan. This means that policyholders will pay out-of-pocket for medical expenses up to the set deductible before their health insurance plan begins to cover the remaining costs. HDHP plans are typically less expensive monthly due to the higher deductible, however, they usually have higher out-of-pocket costs if an individual ever needs to utilize them. HDHPs can also include a Health Savings Account (HSA) which allows individuals to put away money in an account to be used for medical expenses. This allows individuals to save money on their taxes while also getting the benefit of having money set aside in case of a medical emergency. In Hawaii, individuals enrolled in an HDHP must have a deductible of at least $1,400 for an individual and $2,800 for a family. HDHP plans are often beneficial for those who don’t often go to the doctor and don’t expect to have many medical expenses. They can save people money in the long run as they don’t have to pay for expensive premiums each month, however, they should be aware that any medical expenses that come up may be costly until the deductible is met.

Related FAQs

What is an annual maximum?
What is a healthcare provider network?
What is a cost sharing reduction (CSR)?
What is the primary care physician rule?
What are some of the benefits of group health insurance?
What is a Health Savings Account (HSA)?
What is a gap period?
What is an enrollee cost sharing?
What is an out-of-pocket maximum?
What is a network provider?

What is a high deductible health plan (HDHP)?

Related FAQs

Related Blog Posts