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Health plans with high deductible: advantages and disadvantages

A high deductible health plan (HDHP) is any health plan that generally has a lower monthly premium and a higher deductible than traditional plans. Here are some important details that can help you decide if a high deductible plan is right for you.

The deductible is the amount you will pay out of your pocket for medical expenses before your insurance pays for anything. An HDHP will typically have lower premiums than an insurance plan with a lower deductible. People who do not plan to have many medical expenses for the next year should minimize their premiums and choose an HDHP. A health insurance plan with higher premiums but an affordable out-of-pocket maximum might be a safer option if the HDHP's out-of-pocket maximum is more than you can pay.

Some qualified high-deductible health plans may be equated with a Health Savings Account (HSA). You can use HSA funds to help pay for eligible medical expenses. Money deposited in an HSA is tax-free, which can also help you save money.

If you choose the high deductible plan, you will still have 100% coverage of preventive services from network providers before meeting your deductible due to the requirements of the Affordable Care Act. If you choose a health plan with a high deductible and you need non-preventive or expensive medical care, you will need to pay the full deductible before your plan begins to help you pay covered costs. Depending on your medical needs, these costs can be significant out-of-pocket expenses that you may not have accounted for.

Taking a careful look at the pros and cons of high deductible health insurance can help you find the coverage that is right for you. Finding the right plan for you will not only help you save money, but also ensure that you receive coverage for the health care you need when you need it.

Most real-life situations are unclear as to whether you should select a high or low deductible plan. You will need to do the math for your own specific needs, considering your likely medical expenses for the year and the premiums, deductibles, and out-of-pocket maximums for available plans. We can help you navigate through different option and identify the right plan for you. We would love to answer your questions, so give us a call 866-508-0003or email us at

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