High-deductible health plans (HDHP)
High-deductible health plans (HDHP) usually have lower monthly premiums, but require policyholders to pay a larger sum before the insurance company starts to pay out. A high-deductible health plan is defined as one with a deductible of at least $1,400 for an individual or $2,800 for a family.
Out-of-pocket expenses, which include copayments, coinsurance, and deductibles, are capped at $7,050 for individuals and $14,000 for families, although these limits do not apply to out-of-network services.
An HDHP can be used alongside a health savings account (HSA), which allows employees to set aside pre-tax dollars from their salary to be used to pay out-of-pocket expenses. In 2022 the limit is $3,650 for individuals and $7,300 for families. No tax is due on funds in an HSA or on money withdrawn to pay medical bills.
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