High Deductible Health Plan (HDHP)
A High Deductible Health Plan (HDHP) usually has a much higher deductible than a traditional insurance plan.
Usually the monthly premium is lower, but you have to pay more health care costs yourself (your deductible) before the insurance company starts to pay its share.
♦ A high deductible plan can be combined with a health savings account or a health reimbursement arrangement. This allows you to pay for certain medical expenses with untaxed dollars.
For 2025, the IRS defines a high deductible health plan as any plan with a deductible of at least $1,650 for an individual or $3,300 for a family.
• In 2025, an HDHP’s total yearly out-of-pocket expenses (including deductibles, copayments, and coinsurance) cannot be more than $8,300 for an individual or $16,600 for a family.
• This limit doesn’t apply to out-of-network services.
