what is a high deductible health plan hdhp 
the term high deductible health plan hdhp refers to a health insurance plan with a sizable deductible for medical expenses an hdhp usually has a larger annual deductible usually four figures than a typical health plan but charges lower monthly premiums plans fully cover routine preventive care which means that individuals aren t responsible for copays or coinsurance the minimum deductible varies from year to year for 2022 the irs defines an hdhp as one with a deductible of at least 1 400 for individuals and 2 800 for families 1 for 2023 the 2023 minimum annual deductible rises to 1 500 for individuals and 3 000 for families 2understanding a high deductible health plan hdhp a deductible is the portion of an insurance claim that the insured must pay out of pocket before the policy coverage is activated when an individual pays that portion of a claim the insurance company covers the remaining portion as specified in the contract 3hdhps are thought to lower overall healthcare costs by making individuals more conscious of medical expenses the higher deductible also lowers insurance premiums leading to more affordable monthly costs this arrangement benefits healthy people who need coverage for serious health emergencies wealthy families who can afford to meet the deductible also benefit because it offers access to a tax advantaged health savings account 4the flipside of hdhps is first dollar coverage plans these plans have no deductible but you ll pay a much higher premium and the plan may put strict limits on the total value of coverage these plans fully cover routine preventive care without copays or coinsurance before the deductible kicks in for the following list which is not exhaustive hdhp coverage comes with an annual catastrophic limit on out of pocket expenses for covered services from in network providers for example plans set a minimum deductible of 1 400 and 2 800 for individuals and families respectively rising to 1 500 and 3 000 respectively for 2023 the maximum deductible for 2022 is 7 050 for an individual and 14 100 for a family rising to 7 500 and 15 000 for 2023 12