A High Deductible Health Plan (HDHP) is a health insurance plan with out-of-pocket spending limits determined by the IRS. Unlike other plans, healthcare costs are paid entirely by the consumer until they reach their deductible.
At the same time, you are protected if you have a significant health event during the year. Once you meet the deductible, the plan will pay its coinsurance percentage for covered services. Later, if you reach the annual out-of-pocket maximum the plan generally will pay 100% for the remainder of the year.
For 2017, in order for a health plan to be considered a HDHP, the plan must fit the following criteria:
For a Single plan (only one person covered under the plan), the deductible must be $1,300 or greater and the out-of-pocket maximum must be $6,550 or less.
For a Family plan (more than one person covered under the plan), the deductible must be $2,600 or greater and the out-of-pocket maximum must be $13,100 or less.