High Deductible Health Plans (HDHPs) & Health Savings Accounts (HSAs)

What are HDHPs & HSAs?

One way to manage your health care expenses is by enrolling in a
High Deductible Health Plan (HDHP)
in combination with opening a
Health Savings Account (HSA)

How High Deductible Health Plans and Health Savings Accounts can reduce your costs

  • If you enroll in an HDHP, you may pay a lower monthly premium but have a higher
    (meaning you pay for more of your health care items and services before the insurance plan pays).
  • If you combine your HDHP with an HSA, you can pay that deductible, plus other qualified medical expenses, using money you set aside in your tax-free HSA.
  • So if you have an HDHP and don’t need many health care items and services, you may benefit from a lower monthly premium. If you need more care, you’ll save by using the tax-free money in your HSA to pay for it.
  • Your HSA balance rolls over year to year, so you can build up reserves to pay for health care items and services you need later.

What’s considered a High Deductible Health Plan?

Under the tax law, HDHPs must set a minimum deductible and a limit, or maximum, on out-of-pocket costs.
For calendar year 2023, these amounts for HDHPs are:
 Minimum deductible (The amount you pay for health care items and services before your plan starts to pay)Maximum out-of-pocket costs (The most you’d have to pay if you need more health care items and services)
Individual HDHP
Family HDHP
HDHP deductibles are often significantly higher than the minimums shown above and can be as high as the maximum out-of-pocket costs shown above.