Questions and Answers

A. A High-deductible health plan (HDHP) is about being more liable for your medical expenses with the advantage of paying lower premiums. For instance if your deductible is $4,000 and the medical expense is $7,000 then the insurance company will only pay once you have put in the first $4,000, they then will complete the payment.

Participating in a HDHP is required for those seeking to obtain a health savings account (HSA) and similar tax advantaged programs. You first must assess if you have the required capital available to cover the deductible if a medical expenses is occurred by yourself or those dependents listed on the policy. You must also be aware that the deductible applies to all medical expenses, so cheaper costs like doctors office visitations and prescriptions will not be covered. There are some plans were preventative care will not count towards meeting the deductible. Most plans include services such as routine office visitation before you have to meet the deductible.