• A high deductible health plan is a health plan with a significant deductible and lower monthly premiums.

  • Only HDHPs are eligible for preferential health savings accounts.
  • The HDHP is best for younger, healthier people who do not need health insurance except for major medical emergencies.
  • Wealthy individuals and families who can afford to pay high out-of-pocket deductibles and want to enjoy the benefits of the HSA can take advantage of the HDHP.
  • HDHPs are believed to reduce overall health care costs by making people aware of the cost of medical expenses.