A plan with a higher deductible than a traditional insurance plan. The monthly premium is usually lower, but you pay more health care costs yourself before the insurance company starts to pay its share (your deductible). A high deductible plan (HDHP) can be combined with a health savings account (HSA), allowing you to pay for certain medical expenses with money free from federal taxes.

The IRS defines a high deductible health plan as any plan with a deductible of at least $1,300 for an individual or $2,600 for a family. An HDHP’s total yearly out-of-pocket expenses (including deductibles, copayments, and coinsurance) can’t be more than $6,550 for an individual or $13,100 for a family. (This limit doesn’t apply to out-of-network services.)

Preventative Care Services Provided:
  • HDHPs have a maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that you must pay for covered expenses. Out-of-pocket expenses include copayments and other amounts, but don’t include premiums.
  • An HDHP may provide preventive care benefits without a deductible or with a deductible less than the minimum annual deductible. Preventive care includes, but isn’t limited to, the following.
  1. Periodic health evaluations, including tests and diagnostic procedures ordered in connection with routine examinations, such as annual physicals.
  2. Routine prenatal and well-child care.
  3. Child and adult immunizations.
  4. Tobacco cessation programs.
  5. Obesity weight-loss programs.
  6. Screening services. Including screening services for the following:
    1. Cancer.
    2. Heart and vascular diseases.
    3. Infectious diseases.
    4. Mental health conditions.
    5. Substance abuse.
    6. Metabolic, nutritional, and endocrine conditions.
    7. Musculoskeletal disorders.
    8. Obstetric and gynecological conditions.
    9. Pediatric conditions.
    10. Vision and hearing disorders.

[Source: Healthcare.gov Glossary “High Deductible Health Plan”: https://www.healthcare.gov/glossary/high-deductible-health-plan/ ]
[Source: IRS-High Deductible Health Plans: https://www.irs.gov/publications/p969/ar02.html#en_US_2016_publink1000204030 ]