high-deductible health plan (HDHP)
DEFINITION: A high-deductible health plan (HDHP) is a health insurance policy that has a higher deductible and lower premium than traditional health plans. In order to contribute to a health savings account, an individual or family must be covered by an HSA-qualified HDHP.
Although preventive care is covered before the deductible, other expenses must be paid by the insured until the deductible is met. In 2016, HDHPs must have deductibles of at least $1,300 for an individual and $2,600 for a family (unchanged from 2015). In 2016, the out-of-pocket maximum cannot exceed $6,550 for an individual or $13,100 for a family. These amounts are slightly higher than they were in 2015, but they’re lower than the maximum out-of-pocket limits that the ACA requires for all plans in 2016 (ie, there will be other plans available in 2016 that have higher out-of-pocket limits than HSA-qualified HDHPs).