HDHP was created to incentivize clients to be more active and directive with their healthcare. While HDHP can be tricky to navigate, understanding how it works can help you determine if they are the right plan.
How It Works
High-deductible health insurance plans (HDHPs) have higher deductibles, but you’ll pay less for insurance every month. If your health insurance plan has a high deductible, you’ll pay the cost of your health services until the deductible is met. After the deductible is met, your plan begins to pay for your care with no charge.
When An HDHP Might Make Sense
HDHP makes sense for you if:
- You rarely get sick.
- You have enough funds to pay the high deductible.
- You have no existing medical conditions.
- You’re qualified for the tax advantages of an HSA.
When An HDHP Might Not Make Sense
HDHP is not for everyone. You can choose a better plan:
- You’re older than 65.
- You’re planning to have a baby soon.
- You have a family with young children.
- You take several prescription medications.
- You or your children play high-risk sports or hobbies.
- You have a chronic health condition that requires continuous treatment.
- You can’t afford to pay a high upfront fee before your health plan starts.
Is HDHP Right For You
After considering the pros and cons of HDHP, you should be able to decide if it’s right for you. If you are getting a high deductible health insurance plan, try to compare coverage options available in your area, including provider networks, premiums, and out-of-pocket costs to figure out which would work best for you.