How high are the deductibles of a high deductible health plan (HDHP)?

Are you sitting down? I hope so. HDHP deductibles can be at least as much as the average monthly rent for a studio/efficiency in the Big Apple.  We’re talking $2,500 or more (as low as $1,000 if you’re lucky). There are two consolations: 1) At least they warn you. The plan is called a high deductible health plan after all.  2) Your monthly premium is much lower than premiums for other health plans.

Bottom line, look at your budget and the cost for coverage with an HDHP and see how they match up compared to other plans.

The Internal Revenue Service (IRS) determines the minimum deductible amounts in order for a plan to qualify as a high deductible health plan.

For a health plan to qualify as a high deductible health plan in 2013, the plan must have a minimum deductible of $1,250 for self-only coverage and $2,500 for family coverage.

If you are enrolled in a high deductible health plan, you may be eligible to open and deposit money into a health savings account (HSA). The HSA offers tax advantages and flexibility that cannot be matched by other savings vehicles.  With an HSA, you can:

• Deposit healthcare dollars
• Grow your savings
• Save on taxes
• Pay for health care, now or later