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High-Deductible Health Plan (HDHP)

By Kristen Marie

One option for people looking for a low cost, minimal insurance program is a high deductible insurance program, also sometimes called a catastrophic plan. These plans offer exactly what the name suggests, plans with very high deductibles that offer coverage only for serious medical emergencies or needs that surface. They can be a good option for people who qualify and are looking for a very low cost insurance plan. However they are not suited for people with health conditions or people like to go to the doctor frequently since routine and preventive care are not covered within these plans. They are also not suitable for people who are pregnant, who are considering getting pregnant in the near future, or are planning to have a medical procedure done.

What Are High Deductible Plans?

High deductible plans are normally meant for people who only want a safety net in case of emergencies and do not want ongoing preventive care. These plans usually have deductibles of $2500 or more and the insurance will not pay for any medical expense until you have paid the deductible in full. This means that the plans normally are best suited for people who normally do not go to the doctor often and only want protection in case of a major incident.

Cost of High Deductible Plans

High deductible plans are normally much less expensive than COBRA insurance plans and private insurance plans, although they offer less coverage. On average COBRA will cost an individual around $400 monthly, a private full coverage plans costs around $150, and a high deductible plan costs around $75 monthly.

Who Are High Deductible Plans Best For?

High deductible plans are not suited for everyone. In general these plans are best for people who are generally healthy and normally do not go to the doctor often. Since they come with a high deductible, you will be responsible for paying for anything under the cost of your deductible. This normally includes any doctor visits, prescriptions, and testing that comes with normal medical care. Due to this fact, only people who do not go to the doctor frequently should consider a high deductible plan.

Signing Up for High Deductible Plans

The easiest way to sign up and investigate high deductible plans is to get a free health insurance quote and explore multiple plans. When you do this you can see all the plans available on the market and explore the costs and coverage each provides. Make sure to look at the deductible of each as well as any annual caps and coinsurance that the plans involves. You can start your search by getting a quote below.