The HDHP
An HDHP is a health plan with a high deductible.
This will be on where the deductible for an individual will start at $1,100 and $2,200 for a family based upon figures from 2008.
In addition there is a maximum or cap that is allowed on the amount of such deductions.
For an individual this is $5,600 and for a family it is $11,200 again based on 2008 numbers.
Under these types of plans there will be a significant decrease in the cost of premiums, but it also means you will have to cover the cost of things like doctor's visits and prescriptions after your insurer pays its share.
And even though this carries a lot higher risk in terms of medical expenses there is a limit to the risk.
You will need to check with IRS, a professional tax advisor or your health provider to be sure that the plan being considered meets these standards.
And some areas that need to be considered in terms of what is covered includes things like annual physical exams, immunizations, prenatal and well-children care, cancer screenings, stop smoking programs and weight loss programs.
Under this type of option insurers recommend that the savings in premiums be invested in a health savings account or HSA.
You can be eligible for this once you sign up for a high deductible health plan.
And with such account you can be eligible for special tax-exempt options.
This will allow you to have a chance to set aside the potential savings in the event at some point you do face a medical need that requires you to use the funds.
The benefits and risks to such programs are naturally something that each person will wish to consider and decide if they merit actually making such a choice.
And such plans would be something you wouldn't want to consider if you had some serious health problem that dictated a need for regular and specialized care.
So this would be the option that would be benefit those who are young and in excellent health and also live a healthy life style.
Even then the person may have aspects of risk in the family history that makes such choices other than beneficial.
If there were some likelihood of there being a series of illness based on such things, then you may not wish to elect to consider this option.
It would be a good idea to discuss this with your health care provider or insurer before making a final decision.
This will be on where the deductible for an individual will start at $1,100 and $2,200 for a family based upon figures from 2008.
In addition there is a maximum or cap that is allowed on the amount of such deductions.
For an individual this is $5,600 and for a family it is $11,200 again based on 2008 numbers.
Under these types of plans there will be a significant decrease in the cost of premiums, but it also means you will have to cover the cost of things like doctor's visits and prescriptions after your insurer pays its share.
And even though this carries a lot higher risk in terms of medical expenses there is a limit to the risk.
You will need to check with IRS, a professional tax advisor or your health provider to be sure that the plan being considered meets these standards.
And some areas that need to be considered in terms of what is covered includes things like annual physical exams, immunizations, prenatal and well-children care, cancer screenings, stop smoking programs and weight loss programs.
Under this type of option insurers recommend that the savings in premiums be invested in a health savings account or HSA.
You can be eligible for this once you sign up for a high deductible health plan.
And with such account you can be eligible for special tax-exempt options.
This will allow you to have a chance to set aside the potential savings in the event at some point you do face a medical need that requires you to use the funds.
The benefits and risks to such programs are naturally something that each person will wish to consider and decide if they merit actually making such a choice.
And such plans would be something you wouldn't want to consider if you had some serious health problem that dictated a need for regular and specialized care.
So this would be the option that would be benefit those who are young and in excellent health and also live a healthy life style.
Even then the person may have aspects of risk in the family history that makes such choices other than beneficial.
If there were some likelihood of there being a series of illness based on such things, then you may not wish to elect to consider this option.
It would be a good idea to discuss this with your health care provider or insurer before making a final decision.
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