What Is CDHP Health Insurance? 
We insurance people like to use all sorts of acronyms , it keeps us mysterious and sexy . CDHP is the abbreviation for Consumer Directed Health Plan . This is a bit of a fuzzy designation but it is generally used in reference to a high deductible health insurance policy meant to be tied to a Health Savings Account -LRB- HSA - see more mysterious letters -RRB- . An example would be a health insurance policy with a deductible of $ 6350 for an individual followed by 100 % co-insurance coverage after that -LRB- this is the maximum allowable in 2014 -RRB- . This plan would have no office visit , emergency room or prescription copayments with all covered services subject to the $ 6350 deductible . The premium for such a plan design should be meaningfully less than that of a lower deductible plan with copayments . The high deductible health plan policyholder is supposed to take their premium savings and set them aside in a Health Savings Account from which they pay for their routine expenses such as office visits and prescriptions . The amounts a person sets aside in an HSA reduce their net taxable income which reduces their taxes thus saving them not only premium dollars but tax dollars . Unused funds in the HSA can rollover from year-to-year and accumulate on a tax deferred basis over time to build up a financial nest egg that can be tapped into in a person 's Medicare eligibility years to pay for future medical expenses . 