High deductible health plans (HDHP) are defined by the IRS as one with a deductible of at least $1,600 for individuals and $3,200 for families in 2024, or $1,650 and $3,300, respectively, in 2025. Some people are forced into HDHPs and others choose the high deductible plans to reduce their monthly expenses. Whatever the case, it is important to understand the scope of your benefits with a HDHP and be aware of strategies to control your out-of-pocket expenses.
High Deductible Health Plans
In addition to cultivating basic healthy living habits, here are six specific things consumers can do to bring health-care costs down.
- First, understand your “health-care mind-set” — whether you like to go to the doctor a lot or not — and plan your finances accordingly.
- If you do see your physician often, the second recommendation: Use other health-care resources. For example, many health plans offer free nursing hotlines, where you can get basic medical advice and care that is free of charge and minus an office visit.
- Third, become an “empowered patient,” choosing to work with a collaborative-minded physician who “works with you to help you utilize your health-care resources effectively.”
- A fourth cost-cutting tactic is to challenge your doctor when he or she orders a test. They’re not thinking about your pocketbook, but you are. Be sure to ask how the recommended test will affect diagnosis and treatment.
- Make sure everyone covered under your family plan gets any major health-care needs addressed in a given calendar year. Once you reach your out-of-pocket maximums, you don’t have to pay any more for your health care.
- Set up a Health Savings Account (HSA) where you can save the money to pay your part of your health care costs and do it tax-free. An HSA is only available to people enrolled in an HDHP, and it gives you a triple tax benefit on the money you set aside to pay your health care costs. You‘re not required to have an HSA, but it makes a ton of sense to have one if you have an HDHP. Learn more about HSAs here.
Whether you are working, retired, or somewhere in between, fall is the time to evaluate your health care options for next year. Talk to your advisor if you have questions about your healthcare decisions and how to ensure you are taking advantage of all the options available to optimize your savings.