A plan that requires you to pay a higher deductible than most traditional insurance plans. In exchange for the higher deductible, you often pay a lower monthly premium. The cost of care before the insurance begins paying its portion is generally more expensive than that associated with traditional health plans. A HDHP can be combined with Health Savings Account to help covered qualified medical expenses.
According to the IRS, a HDHP is any plan where the deductible is at least $1,300 for an individual or $2,600 for a family. Total yearly out-of-pocket costs for a HDHP cannot exceed $6,550 for an individual or $13,100 for a family.