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Frequently Asked Questions About High Deductible Health Plans

What is a High Deductible Health Plan?
HDHPs have a higher annual deductible than traditional health plans. For 2017, an HDHP has a minimum annual deductible of $1,300 for single coverage and $2,600 for single with 1 or more dependents.

2017 HDHPs have annual out-of-pocket limits which do not exceed $6,550 for single coverage and $13,100 for coverage by a single with 1 or more dependents.

Individuals can buy high-deductible policies on their own or through their employers.


Can any high-deductible health plan qualify for an HSA?
Any high-deductible health plan can qualify, as long as it meets the IRS requirements minimum deductible and maximum out-of-pocket stated in the previous answer above.

Do prescription costs count toward the deductible?
Yes, qualified prescription purchases are applied to the deductible and maximum out-of-pocket limit.

Why should I change my current traditional plan to a Qualified High Deductible Health Plan?
Purchasing a high dedcutible health plan will save you annual premium costs. You can choose to redirect some of those savings to a Healthcare Reimbursement Arrangement that helps employees deal with the higher deductibles. Contributions made to the HRA by you are tax deductible and do not count as income for your employees. It allows you, as the employer, to gain greater control over your health plan spending.

How do I keep my employees from revolt when they see those high deductibles?
As the employer, you will create and fund a Healthcare Reimbursement Arrangement that will pay for a portion of the high deductible. You choose an amount for which you are comfortable. That way your employees' high deductible is made much more manageable.