GLOSSARY · INSURANCE
High-deductible health plan (HDHP)
A health plan whose deductible is at least an IRS minimum and whose out-of-pocket maximum is at most an IRS ceiling, both set each year. Only people covered by one, with no disqualifying other coverage, can contribute to a health savings account. It usually trades a lower premium for higher costs when you use care, so it suits people who expect low or predictable medical spending and can cover the deductible from cash.
Also called: HDHP, HSA-eligible plan, HSA-qualified plan
FORMULA
Expected yearly cost = premiums + expected out-of-pocket spending − employer HSA money − tax saved on HSA contributions
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CHAPTER · EXPENSE REDUCTION & COST AUDITING · STRATEGIESPaying Less for Insurance Without Losing ProtectionCHAPTER · HEALTH INSURANCE OPTIMIZATION · DEEP DIVEThe True Cost of a Health PlanRELATED TERMS
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