What is the defining feature of a High Deductible Health Policy?

A High Deductible Health Plan (HDHP) is characterized by higher deductibles and out-of-pocket costs than traditional health plans, and it is often paired with Health Savings Accounts (HSAs) or similar savings accounts. The defining feature that stands out is that these plans typically include a savings account to help cover routine medical expenses, allowing beneficiaries to save for medical costs while enjoying the tax advantages associated with the account.

This setup encourages individuals to take a more active role in managing their healthcare costs and can lead to greater consumer awareness about pricing in the healthcare marketplace. The funds in the savings account can be used for eligible medical expenses, making healthcare more accessible financially when the deductible is not yet met.

Other options, such as low out-of-pocket maximums or mandatory co-pays regardless of the deductible, are generally not characteristics of HDHPs. In fact, low out-of-pocket maximums are more typical of plans with lower deductibles. Similarly, the option concerning access to providers without referrals could apply to various types of insurance plans and is not a unique quality of HDHPs.