Reasons to consider an HDHP

  • Deductibles may be only slightly higher than traditional plans
  • Premium savings could help offset higher deductibles
  • Only HDHP enrollment lets you contribute to a HealthEquity Health Savings Account (HSA)

When considering a health plan, high-deductible health plans (HDHP) are one option to help you save money on health insurance. In this article, we break down some of the basics of HDHPs so you can make the best decision during open enrollment.

Deductibles

An HDHP has a higher deductible — the amount you pay for covered healthcare before insurance kicks in. Deductibles vary by plan, but some HDHPs have deductibles only slightly higher than traditional plans.

Not all services are affected by the deductible. Preventive care is covered at 100% before you meet your deductible. Also, once you reach your out-of-pocket maximum, the plan covers 100% of covered expenses for the rest of the year.

Premiums

Health plans with lower deductibles tend to have higher premiums. If you're generally healthy and don't anticipate major medical expenses, the premium savings from an HDHP could outweigh the risk of a higher deductible.

The money you save on premiums can be used for healthcare expenses in retirement or other financial goals.

HSA eligibility

One of the biggest advantages of an HDHP is that it makes you eligible for a HSA. An HSA lets you set aside pre-tax dollars to pay for qualified medical expenses. HSA funds never expire and roll over year after year.

Check your HSA eligibility to make sure you qualify. You can spend money tax-free on thousands of eligible items, or save for long-term health savings.

Shop for eligible products at the HSA Store.

Employer contributions

Many employers contribute to their employees' HSA when enrolled in an HDHP. These contributions reduce your out-of-pocket costs and can add up significantly over time.

Be sure to check your employer's benefits package and review the current HSA contribution limits to maximize your savings. Visit our Help Center for more information, or browse the HSA Store for eligible items.