{"id":325,"date":"2026-09-10T15:05:46","date_gmt":"2026-09-10T15:05:46","guid":{"rendered":"https:\/\/www.coveragefox.com\/knowledge-center\/?p=325"},"modified":"2026-09-10T15:07:25","modified_gmt":"2026-09-10T15:07:25","slug":"what-is-high-deductible-health-plan","status":"publish","type":"post","link":"https:\/\/www.coveragefox.com\/knowledge-center\/what-is-high-deductible-health-plan\/","title":{"rendered":"What Is a High-Deductible Health Plan (HDHP)?"},"content":{"rendered":"\n
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A high-deductible health plan, or HDHP, is a health insurance plan that generally requires you to pay more toward covered care before the plan begins sharing many of those costs. In return, HDHPs often have lower monthly premiums than plans with lower deductibles.<\/p>\n

That tradeoff can work well for some people, but the deductible is only part of the picture. Before choosing an HDHP, look at the premium, deductible, coinsurance, out-of-pocket maximum, prescription coverage, provider network, and whether the plan makes you eligible for a health savings account, or HSA.<\/p>\n

You can compare different health insurance plans<\/a> to see how these costs fit together.<\/p>\n <\/div>\n\n\n

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How Does an HDHP Work?<\/h2>

With an HDHP, you generally pay for many covered non-preventive services until you meet your deductible. After that, you may share costs with the plan through coinsurance or copayments until you reach the plan’s out-of-pocket maximum.<\/p>\n

An HSA-eligible HDHP may also allow you to contribute money to a health savings account and use those funds for qualified medical expenses.<\/p>\n <\/div>\n\n\n

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What Makes a Health Plan an HDHP?<\/h2>

For HSA purposes, a plan must meet annual requirements set by the IRS to qualify as a high-deductible health plan.<\/p>\n

For 2026:<\/p>\n <\/div>\n\n\n\n

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2026 HDHP Limit<\/th>Self-Only Coverage<\/th>Family Coverage<\/th><\/tr><\/thead>
Minimum annual deductible<\/td>$1,700<\/td>$3,400<\/td><\/tr>
Maximum annual out-of-pocket expenses<\/td>$8,500<\/td>$17,000<\/td><\/tr>
HSA contribution limit<\/td>$4,400<\/td>$8,750<\/td><\/tr><\/tbody><\/table> <\/div>\n <\/div>\n
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Eligible individuals age 55 or older can generally make an additional $1,000 HSA catch-up contribution.<\/p>\n

The IRS updates these limits periodically, so always check the current rules when comparing plans.<\/p>\n

Beginning in 2026, certain Bronze and Catastrophic individual-market plans available through an ACA Marketplace are also treated as HSA-eligible HDHPs under federal law, even if they do not meet the standard deductible or out-of-pocket limits above. Other HSA eligibility requirements still apply.<\/p>\n

It is also important to distinguish between a plan that simply has a large deductible and an HSA-eligible HDHP<\/strong>. Having a high deductible by itself does not necessarily make a plan HSA eligible.<\/p>\n <\/div>\n\n\n

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How HDHP Costs Work Together<\/h2>

Understanding four terms makes HDHPs much easier to compare: premium, deductible, coinsurance, and out-of-pocket maximum.<\/p>\n <\/div>\n\n\n\n