High-deductible health plans usually work best for young healthier people, while some employees don’t have a choice and are offered only HDHPs by their employer.
Both types of health insurance members should take a close look at tax-advantaged savings accounts tied to HDHPs when undergoing open enrollment with their employer.
“A high-deductible health plan literally just means that you’re paying a high deductible, but your premiums are going to be a lot smaller,” said Justin Held of the International Foundation of Employee Benefit Plans.
High-deductible health plans are typically associated with two attached accounts, a health savings account (HSA) or a health reimbursement arrangement (HRA), he said.
“These accounts can help you pay for expenses that you might incur before your deductible is satisfied, as well as save for future expenses that you might see coming down the road,” Held said.
To be considered a high-deductible health plan in 2026, the plan must have an annual deductible of at least $1,700 for individual-only coverage or $3,400 for family coverage. The insured pays for nearly all medical expenses until that annual deductible is reached.