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High Deductible Health Plan (HDHP)

Insurance Glossary

A health plan whose deductible meets or exceeds a minimum the IRS sets each year and whose out-of-pocket costs stay under a stated cap. It covers little beyond preventive care until the deductible is met, and being enrolled in one is what makes a person eligible to contribute to a health savings account. The qualifying thresholds are adjusted annually for inflation and a merely large deductible does not automatically qualify, so the plan documents state whether the plan is HSA eligible.

This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.