High Deductible Health Plan (HDHP)

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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 2024, the IRS defines a high deductible health plan as any plan with a deductible of at least $1,600 for an individual or $3,000 for a family.

• In 2024, an HDHP’s total yearly out-of-pocket expenses (including deductibles, copayments, and coinsurance) cannot be more than $8,050 for an individual or $16,100 for a family.

• This limit doesn’t apply to out-of-network services.

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