What is an HDHP?

What is an HDHP?

• A. A high deductible health plan with low premiums, often paired with an HSA
• B. A health plan with no deductible and high premiums
• C. A plan that covers only preventive care
• D. A plan that requires referrals for specialist visits

Answer: (A)

An HDHP is a health plan that requires you to pay most of your medical costs out of pocket until you meet a relatively high deductible, while offering lower monthly premiums. It’s commonly paired with a Health Savings Account (HSA), which lets you set aside pre-tax dollars to pay for qualified medical expenses. The funds in an HSA roll over year to year and remain yours, even if you change jobs or plans, making it a flexible way to save for future health costs. This pairing gives you lower regular costs but more responsibility up front, and it’s designed to be a more consumer-driven option where you pay more when you need care but have a tax-advantaged savings tool to help offset costs. The other descriptions don’t fit because they describe plans with no deductible and high premiums, or plans limited to preventive care, or plans requiring referrals—none of which capture the high deductible with lower premiums and HSA pairing.

An HDHP is a health plan that requires you to pay most of your medical costs out of pocket until you meet a relatively high deductible, while offering lower monthly premiums. It’s commonly paired with a Health Savings Account (HSA), which lets you set aside pre-tax dollars to pay for qualified medical expenses. The funds in an HSA roll over year to year and remain yours, even if you change jobs or plans, making it a flexible way to save for future health costs. This pairing gives you lower regular costs but more responsibility up front, and it’s designed to be a more consumer-driven option where you pay more when you need care but have a tax-advantaged savings tool to help offset costs. The other descriptions don’t fit because they describe plans with no deductible and high premiums, or plans limited to preventive care, or plans requiring referrals—none of which capture the high deductible with lower premiums and HSA pairing.