 TITLE: What Is a High Deductible Health Plan? CONTENT: How Does a High Deductible Health Plan Work?\n--------------------------------------------\nYou pay a monthly premium for health insurance whether you use the plan or not. When you receive health care and file an insurance claim, insurance pays part or all of the bill if the care is covered under your plan. Most plans also have an annual _deductible_ amount you'll have to cover on your own before insurance begins to cover your costs.\nEven if your plan's deductible seems high to you, it must meet standards set by the IRS to qualify as a true HDHP. In 2021, an HDHP is one with a deductible of $1,400 or more for an individual and $2,800 or more for a family, and an out-of-pocket maximum (the amount you must pay out of pocket for care, including the annual deductible) of $7,000 for an individual and $14,000 for a family. The plan must also pay for non-preventive care only after you've met your deductible.\nMost health insurance plans cover preventive care without requiring you meet your deductible first. If you have an HDHP with a $1,400 deductible, you'll pay for any non-preventive care until you've paid $1,400. After that, your insurance pays for care, although you may still have a copay (a flat fee for visiting a provider or filling a prescription) or coinsurance (a percentage of medical costs you pay after meeting your deductible).\nThe rules for HDHPs are complex. If you're not sure a plan meets the definition, go over your insurance information, contact your insurer or see if it qualifies you for a health savings account (HSA)—only HDHPs qualify for these accounts. END