Which statement best describes an HDHP plan?

• A. No deductible and no out-of-pocket costs.
• B. lower premium, higher upfront cost for care, often paired with HSA, higher deductible, you pay 100% of services until the deductible is met
• C. Higher premiums with lower deductibles.
• D. Only covers emergency care.

Answer: (B)

High-deductible health plans are built with lower monthly premiums but a higher upfront cost to you each time you use care. They’re often paired with a Health Savings Account, which lets you set aside pre-tax money to pay for medical expenses. Because the deductible is high, you typically pay the full cost of most services until that deductible is met; after meeting it, you share costs with the insurer up to the plan’s out-of-pocket maximum.

This setup contrasts with plans that have no deductible or no out-of-pocket costs, or with plans that charge higher premiums for lower deductibles, or with coverage that only pays for emergencies. The statement described here—lower premium, higher upfront cost, often with an HSA, higher deductible, and paying 100% of services until the deductible is met—best captures how an HDHP works.