What is a high deductible health insurance policy?

A high deductible health insurance policy, or an HDHP as it is sometimes called, is a health insurance plan that is set up to protect the health of the policy holder, while not costing a lot in annual premiums.

An HDHP plan is set up to have extremely high annual deductibles. A deductible is the amount of money an individual must spend out-of-pocket in order for the health insurance to kick in. The deductibles on an HDHP plan can range from a thousand to a couple thousand dollars depending upon the type of plan and the insurance provider.

One of the biggest benefits of this type of health insurance plan is the fact that the policy holder will be able to save money. The policy holder saves money by not having to pay high monthly premiums for health insurance coverage they may or may not be using.

The HDHP plan allows people to have health insurance coverage that will provide protection in the event of a medical emergency or hospital stay, but that does not require the frequent payment of high monthly premiums. This setup allows policy holders to save money that can be put into a health savings account or other type of investment.

A HDHP plan may sound ideal, but it is not a health insurance plan that is right for everyone. The high deductibles can make routine checkups and regular doctor visits expensive. This type of health plan is ideal for individuals who are relatively healthy and who can afford to pay out the high deductibles should a health emergency arise.

Don’t find yourself without the proper health insurance coverage should an emergency arise. Work with the independent insurance agents at Access Insurance Services Agency in San Antonio, TX to discuss various health insurance plans and how they can provide you with the coverage that you want and need.