HMO Vs PPO+ Beyond: Assessing The Different Types Of Health Insurance Plans

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High Deductible Health Plan (HDHP)

Smiling nurse pointing to a handsome doctor

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An HDHP offers low premiums but high deductibles. So your monthly cost will be affordable, however, you will need to meet a high deductible before co-insurance kicks in. An HDHP can be a PPO, HMO or EPO. The HDHP format refers to how the pricing is structured. Often, salaried employees can ask their company to open a health savings account for them, to help cover their HDHP deductibles. Here, they can invest pre-tax dollars, and save for their deductibles.

Pros: Low monthly cost.

Cons: High deductible.

Who is it good for? An HDHP can be the right plan for someone who is managing a serious health issue that requires frequent doctor’s visits. These individuals will typically meet the high deductible quickly, and receive the benefits of coinsurance early in the year, while benefiting from low monthly costs.

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