Copyright 2008 The Insurance Files
     The newest type of health insurance that is only recently becoming available to people looking for health insurance is called a High Deductible Health Plan, or HDHP. The coverage provided is unique compared to other types of health plans, in that the policyholder has (as you might have guessed) a very high deductible in exchange for a very low monthly payment, or premium. The lowest deductible for a HDHP is usually $1,000, but can climb to over $10,000. As long as your deductible is $1,100 or higher with a HDHP, your medical expenditures can be paid for with a Health Savings Account (HSA) to give you tax breaks. HDHP are perfect for people who would consider themselves healthy and don't like "paying for insurance they never use." With the option of a HDHP, the safety net of being insured (as opposed to going without to

avoid the "unnecessary" cost) is there without the higher cost of traditional insurance. In a lot of cases, the HDHP provider can still give the policyholder in-network pricing with their connection to the insurance industry. Staying healthy is paramount for keeping the low cost HDHP at a low cost to you. That leads us to the biggest disadvantage of HDHPs and what will scare away a lot of potential policyholders. If you ever get sick, or a family member gets sick, the out-of-pocket expense could be very high. If the deductible is $10,000 and the bill for your treatment is $8,500, the full amount would be your responsibility. If you are doing well financially, a good idea would be to deposit into your HSA an amount equal to your deductible before something comes up so that way you have a complete safety floor, not just a net, to fall onto if necessary. Get a free health insurance quote for a HDHP for yourself today!