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Should I Choose a High-Deductible Health Plan?
Understand the trade-offs of HDHPs and how they work with HSAs to save you money.
What is an HDHP?
A High-Deductible Health Plan (HDHP) is a health insurance plan with higher deductibles but lower monthly premiums than traditional plans. For 2025, the IRS defines an HDHP as a plan with a minimum deductible of $1,650 (self) or $3,300 (family). The key advantage of an HDHP is that it makes you eligible to open and contribute to a Health Savings Account (HSA), unlocking significant tax savings. HDHPs may be a good fit if you: • Are generally healthy and don't expect high medical expenses • Want to lower your monthly premium costs • Want access to the triple tax advantage of an HSA • Are interested in building long-term healthcare savings • Can afford to pay the higher deductible if needed HDHPs may NOT be the best fit if you: • Have ongoing medical conditions requiring frequent care • Take expensive prescription medications regularly • Are planning a major medical event (surgery, pregnancy) • Prefer predictable out-of-pocket costs