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High Deductible Health Plan HDHP

High Deductible Health Plan HDHP consumer directed health plan

A High Deductible Health Plan (HDHP) is a health insurance plan that contains certain requirements with respect to deductibles and out-of-pocket expenses. The deductibles are generally higher than for a standard health insurance plan, and out-of-pocket expenses are generally not covered (up to a maximum amount) until the annual deductible is reached. Due to the nature of these health plans the premiums are generally lower.

Most HDHP plans provide exceptions for expenses defined as preventative care, such as periodic health evaluations, well-baby/well-child care, immunizations, tobacco cessation and weight loss programs, and certain screening devices. Each HDHP plan defines these types of expenses individually.

In addition, coverage by any other health plan is not permitted by the individual who has the HDHP. Some exceptions to this rule include accident, disability, dental, vision, long-term care, or specified disease insurance (cancer).

Lastly, the HDHP offers co-pays for prescription drugs or office visits only after satisfying the annual deductible. These expenses are subject to the annual deductible. Co-pays and prescription coverage are allowed after the HDHP annual deductible has been met.

High Deductible Health Plans are generally offered by employers who offer a Health Savings Account (HSA) plan, or a Health Reimbursement Arrangement(HRA) plan.

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