High deductible health plans are a common choice for many people today. They come with unique benefits to think about when you pick your health plan. This overview will help you learn what a high deductible health plan is, who it may work best for, and how to see if it meets your needs.

What Is a High Deductible Health Plan (HDHP)?

A high deductible health plan is health insurance with a bigger deductible. This means you must pay more of your own money before your plan starts to help cover costs. The main features are:

• Lower Monthly Costs: HDHPs often have lower monthly premiums than other plans. This is good for people who are healthy and want to save money by paying less each month.
• Higher Deductibles: As the name says, these plans have higher deductibles than regular plans. In 2025, the smallest deductible for an HDHP will be $1,500 for one person and $3,000 for a family.
• Health Savings Accounts (HSAs): HDHPs often pair with a Health Savings Account. This account lets you set aside money before taxes to use for medical costs. Using an HSA can help you pay less out of pocket overall.

How HDHPs Work

Knowing how HDHPs work makes it easier to pick the right plan. Here’s what you should know:

1. You Pay Your Deductible First: You pay for most healthcare costs out of your own pocket until you reach your deductible. The only exception is for preventive care, which is covered in full.
2. Your Costs After the Deductible: Once you meet your deductible, you share the cost with your insurance until you reach your out-of-pocket maximum. After that, your plan covers most other costs.
3. Preventive Services are Covered: HDHPs cover services like shots, screenings, and yearly checkups at no cost, even before you meet your deductible. This encourages you and your family to stay healthy.

Pros and Cons of High Deductible Health Plans

HDHPs have benefits and drawbacks to consider.

Who Are High Deductible Health Plans Best For?

The right plan depends on your health, your family, and your budget. Here’s who may do well with an HDHP:

Best Suited For

1. People Who Are Young and Healthy: If you hardly ever get sick or see the doctor, the lower cost each month can save you money.
2. People Who Like to Plan Ahead: If you know how to use your HSA for tax savings and future costs, an HDHP may fit your needs.
3. People Comfortable with Risk: If you are willing to take the chance of paying higher costs in exchange for lower monthly premiums, HDHPs can work well.

Not Ideal For

1. People with Long-Term Conditions: If you visit the doctor often or need medicine all the time, the high deductible can get expensive.
2. Big Families: If your family often needs care, a plan with a lower deductible—even with higher monthly costs—may end up saving you money.
3. Older Adults: Because older people often need more care, the higher cost before coverage can make HDHPs less helpful.

How to Choose the Right Plan

Think about your health, how much you can pay each month, and your comfort level with surprise costs. The right fit depends on your own needs.

Making the Most of a Health Savings Account (HSA)

If you sign up for an HDHP, an HSA is a useful tool with many advantages:

Tax Benefits

• No-Tax Contributions: HSA money goes in before taxes, lowering your taxable income.
• Grows Tax-Free: Any money your HSA earns from interest or investments does not get taxed.
• Tax-Free Withdrawals for Health Costs: If you use HSA funds for approved medical costs, they are not taxed.

Smart Long-Term Savings

• Save for Future Medical Needs: You do not have to use all the money each year. It rolls over and stays in your account.
• For Non-medical Use After Age 65: Once you are 65, you can use HSA money for things other than healthcare, but you will pay regular taxes on those withdrawals.

Effective HSA Tips

1. Put in the Most You Can Each Year: Try to reach your HSA’s contribution limit to get the most savings.
2. Consider Investing: Many HSAs let you invest your money to help it grow over time.
3. Save Your Receipts: Keep all your medical receipts. You may need them if you take money out of your HSA to pay yourself back for care.

Getting the Most from Your HDHP

HDHPs are not the right choice for everyone, but you can get many benefits if you use them wisely.

Manage Your Health Proactively

• Use Preventive Services: Get your no-cost screenings and checkups each year to help find problems early.
• Compare Costs: Look at what different clinics or pharmacies charge so you can get the best price.
• Emergency Fund: Save money just in case you need to pay your whole deductible for an emergency.

Know Your Plan and Ask Questions

• Understand Your Plan Details: Know your deductible, out-of-pocket maximum, and what is covered.
• Talk with Your Providers: Ask about costs and choices before you receive care.

Ambetter Health Is Here for You

Ambetter Health helps you get the most from your HDHP. You have support from programs that make it easier to understand your plan, manage your care, and get the information you need to feel confident.

Empower Your Health Decisions with the Right Coverage

Choosing a high deductible health plan is a big decision. To be comfortable with your plan, you need to weigh the benefits and drawbacks, know your health needs, and see what you can afford. HDHPs can mean smaller monthly payments and possible tax savings, but you need to plan for possible higher costs when you need care.

Ambetter Health is always ready to help you understand your choices. Our goal is to make health plans simple and empowering. We want you to feel sure about the decisions you make for both your health and your budget.