Qualified High-Deductible Health Plan

What Does Qualified High-Deductible Health Plan Mean?

A qualified high-deductible health plan is a type of health insurance plan characterized by lower premiums and higher deductibles compared to many other health plans. For a plan to be classified as high-deductible, its annual deductible must fall within a specified range, which can vary each year. For example, in 2013, the deductible range was $1,250 to $6,250 for individuals and $2,500 to $12,500 for families. Before picking this kind of plan, it helps to know how premiums, deductibles, copays, and coinsurance work together, since the math shifts once you actually start using the coverage.

Insuranceopedia Explains Qualified High-Deductible Health Plan

Qualified high-deductible health plans enable policyholders who cannot afford high premiums to still access healthcare. In some cases, these plans may even have no premiums, requiring the policyholder to pay only the deductibles. While high-deductible insurance makes health coverage more accessible for those unable to afford other types of insurance, it can still lead to significant costs if the policyholder files numerous claims within a single year. Whether an HDHP is the right fit usually comes down to how often you expect to use medical care in a year, which is one of the main things to weigh when choosing a health insurance plan.