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.

What to do next

Need help managing out-of-pocket costs with an HDHP or transitioning to Medicare? Find a Solace advocate today.