High Deductible Health Plans

Health plans with lower premiums and deductibles meeting a yearly threshold that qualifies them for health savings accounts.

Overview

Until the deductible is met members pay the full negotiated price for most care, though preventive services are exempt from the threshold. These plans pair with health savings accounts, letting pretax money cover cost sharing, and employers often seed those accounts. The model shifts routine spending decisions to consumers and works best for people with cash reserves and few expected claims. Critics note that cost sharing can deter needed care, not just wasteful care, and that a serious illness leaves families exposed to thousands in cost sharing capped only by the out of pocket maximum. They dominate much of the individual market and a large share of employer enrollment.