What is a high deductible health plan (HDHP)?

A High Deductible Health Plan (HDHP) is a health insurance plan that requires individuals to pay a high deductible before they can receive any benefits. This means that individuals must pay for their health care costs out-of-pocket until they reach the deductible. Once the deductible is met, individuals can then receive the full range of benefits from their health insurance plan, including preventive care, prescription drugs, and other services. In North Carolina, HDHPs are regulated by the North Carolina Department of Insurance. HDHP plans must meet certain standards in order to be approved by the Department, including paying for certain preventive care services and prescription drugs with no deductible. Additionally, the deductible must be at least $1,300 for an individual and $2,600 for a family in 2021. HDHPs are often attractive to individuals who are looking for a more affordable health insurance option. While the deductible may be high, premiums for these plans tend to be lower than with other types of health insurance. Additionally, HDHP plans often include lower out-of-pocket costs for those who meet their deductible. For these reasons, HDHPs can be an attractive option for individuals who may not be able to afford traditional health insurance plans.

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What is a high deductible health plan (HDHP)?

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