What does HDHP stand for?

• A. Health Discount Health Plan
• B. High-Deductible Health Plan
• C. Heavy-Duty Health Policy
• D. High-Deductible Hospital Plan

Answer: (B)

HDHP stands for High-Deductible Health Plan. This type of plan has a higher deductible than traditional coverage, so you pay more out of pocket before the plan starts paying benefits. It’s often paired with a Health Savings Account (HSA), which lets you save pre-tax money for medical expenses and can roll over year to year. The trade-off is lower monthly premiums in exchange for paying more upfront if you need care, making it a common choice for those who want to control premiums and are comfortable with higher out-of-pocket costs when using care. The other phrases aren’t standard terms for this insurance category.