What Is a High-Deductible Health Plan (HDHP)?

A High-Deductible Health Plan (HDHP) is a health insurance plan with lower monthly premiums but higher out-of-pocket costs. These plans require enrollees to pay a significant deductible before insurance begins covering expenses.

Key features of HDHPs

• Minimum deductible: As of 2024, an HDHP must have a deductible of at least $1,600 for individuals and $3,200 for families (amounts may change yearly).
• Higher out-of-pocket maximums: Total costs can be significantly higher before full coverage kicks in.
• HSA eligibility: HDHP enrollees can open a Health Savings Account (HSA) to set aside tax-free funds for medical expenses.

Who benefits from an HDHP?

• Those who are generally healthy and don’t expect frequent medical expenses.
• People who want to lower their monthly premiums and save for healthcare costs with an HSA.
• Individuals who prefer financial flexibility and can afford higher out-of-pocket costs if needed.

How Solace can help

HDHPs can lead to high, unexpected medical bills. A Solace advocate can help you estimate costs, explore financial assistance options, and navigate claims or appeals if a charge seems incorrect. If you’re transitioning from an HDHP to Medicare, an advocate can also guide you through the process to avoid coverage gaps.