What Makes a Plan an HDHP?
The IRS defines an HDHP by minimum deductible thresholds. For 2025, a plan must have:
- Individual coverage: Minimum deductible of $1,650
- Family coverage: Minimum deductible of $3,300
- Individual OOP max: No more than $8,300
- Family OOP max: No more than $16,600
๐ก The most important benefit of an HDHP: it makes you eligible to contribute to a Health Savings Account (HSA) โ the most tax-efficient account available to Americans.
HDHP Advantages
- Lower monthly premiums โ often $100โ300/month less than traditional plans
- HSA eligibility โ triple tax advantage on savings
- Good for healthy people who rarely need care
- Encourages being a smarter healthcare consumer
HDHP Disadvantages
- High out-of-pocket costs when you do need care
- Can be financially risky without adequate HSA savings
- Preventive care is free but most other care requires meeting the deductible first
- Not ideal if you have ongoing prescriptions or chronic conditions
Is an HDHP Right for You?
An HDHP typically makes sense if:
- You are generally healthy with few expected medical expenses
- You can afford to fund an HSA to cover the higher deductible
- The premium savings exceed your likely out-of-pocket costs
- You want to build long-term tax-free medical savings
It typically does NOT make sense if you have chronic conditions, take expensive medications, or cannot afford to fund an HSA cushion.
Compare HDHP vs Traditional Plan
See which plan costs you less based on your expected healthcare usage.
Compare HDHP vs Traditional Plan โFrequently Asked Questions
Can I keep my current doctors with an HDHP?
Yes โ an HDHP is a deductible structure, not a network type. HDHPs can be PPO, HMO, or EPO plans. Your network access depends on the plan type, not whether it's an HDHP.
What is the HDHP deductible for 2025?
For 2025, the IRS minimum deductible for an HDHP is $1,650 for individual coverage and $3,300 for family coverage. Plans with lower deductibles do not qualify as HDHPs and cannot be paired with an HSA.
Can I have an HDHP through my employer?
Yes. Many employers offer HDHPs alongside traditional plans. During open enrollment you can compare the total cost (premium + expected out-of-pocket) of each option using our plan comparison calculator.