Open Enrollment on the Affordable Care Act’s (ACA) Health Insurance Marketplace begins on November 1 and you have until January 15 to enroll, re-enroll or change your health insurance plan.1
One ACA option you can choose is a high deductible health plan (HDHP).2 If you’re considering an HDHP, here are some key factors to keep in mind.
What is a High Deductible Health Plan (HDHP)?
Let’s start with some basics: A deductible is the amount you pay for healthcare services before your health insurance company starts to pay for covered services. Say you have a $2,000 deductible. That means you’ll always pay the first $2,000 of the eligible services you receive.3
There’s also a cap on how much you’ll have to pay out of pocket in a year. This refers to the amount you’ll pay for care that your health insurance company doesn’t pay — for example, your deductible, copayments and coinsurance. This is called the out-of-pocket maximum.
Once you reach your out-of-pocket maximum, your insurance pays 100% of covered costs for the rest of the year. For 2026, that cap (or out-of-pocket maximum) is $8,500 for an individual and $17,000 for a family.4
HDHP plans, by nature, have a higher deductible than more traditional-type health insurance plans. So, the monthly premium is usually lower, but you end up paying more healthcare costs before your health insurance company starts to pay for covered services. For 2026, any plan with a minimum deductible of $1,700 for an individual or $3,400 for a family is considered an HDHP.4
Considering a high deductible health plan (HDHP)? Explore plans online.
One reason HDHPs are popular: You pay less for them up front. And here’s the thinking: If money tends to be tight in your household, it could be tempting to choose a plan with the lowest monthly premium (or cost), says Jeffrey Kullgren, M.D. He’s an associate professor of health management and policy at the University of Michigan School of Public Health and a research scientist at the VA Center for Clinical Management Research in Ann Arbor, Michigan.
But HDHPs can also be deceptively costly when you consider an HDHP’s total yearly out-of-pocket expenses (including deductibles, copayments and coinsurance). So it’s important to make sure an HDHP fits your health needs.
What are the financial benefits of a High Deductible Health Plan (HDHP)?
You’ll pay less each month. If you’re young and in good health and anticipate only needing preventive care like annual wellness exams or screening tests, then an HDHP could be a good choice for you, says Dr. Kullgren. These items are covered 100% when you stay in-network.5
But be smart about it too. “Ask yourself: If you were to have a situation where you needed medical care urgently, or were in an emergency situation, would you have enough money on hand to afford it?” adds Dr. Kullgren. If the answer isn’t “yes,” maybe it’s not the right type of plan for you.
You may gain a tax-advantaged spending account. Many high-deductible health plans are paired with a health savings account (HSA), which is exactly what it sounds like: a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses like deductibles, copayments and coinsurance (unfortunately, you can’t use an HSA to pay premiums.)6
Since an HSA is tax-advantaged, it immediately starts helping you save money. For 2026, if you have an individual plan, you can contribute up to $4,400. If you have family HDHP coverage, you can contribute up to $8,750.4
If you don’t use your HSA, the funds you save in it can be rolled over each year.7 Since HSAs are considered an investment account, they can earn interest or other earnings, tax-advantaged, too.
You may be able to get free telehealth visits even before your deductible is met. Here’s a lesser-known benefit: a new law lets many HDHPs cover telehealth visits before you’ve met your deductible.8 That means you may be able to see a doctor online for a minor illness without paying a copay or the visit cost first.
Ready to explore insurance plans where you live?
What are the possible drawbacks of an HDHP?
You may end up putting off medical care. Since you have to pay out of pocket for anything that’s non-preventive — say, you sprain your knee playing in a Sunday softball game — you may be inclined to avoid potentially costly doctor visits or diagnostic procedures points out Peter Ubel, M.D. He’s a physician and professor of business, public policy and medicine at Duke’s Fuqua School of Management in Durham, North Carolina.
This may lead to greater healthcare costs down the road, since you’ve put off needed care, and now your knee aches every day. (Depending on your injury or illness, putting off care could even be life-threatening.)
Case in point: One recent study found that people with high-deductible health plans were more likely to be diagnosed with diabetes later than people with other types of insurance. Researchers think the high upfront costs may cause people to put off seeing a doctor, delaying their diagnosis.9
Interested in exploring an HDHP? Explore plans online or contact a licensed insurance agent at 1-855-607-1823.
Other research has found that people who purchase HDHPs are less likely to get care for chronic conditions.10 “Patients don’t always know which exams are necessary and unnecessary,” says Dr. Ubel.
It can get expensive if you have a chronic medical condition. If you think it’s likely that you’ll cruise through your deductible, you’re probably better off shopping for a plan with a higher premium but lower out of pocket costs.
“It’s really important that people sit down and think about their healthcare needs over the next year, to make sure an HDHP is a good fit,” says Dr. Kullgren.
This is particularly true if you don’t think you’ll have time to shop around for the least expensive care, he notes.
Dr. Kullgren’s past research has found that many patients who have an HDHP don’t discuss or try to negotiate the price of a service with a healthcare provider. They also may not spend time looking for a better price on tests or medical procedures.
“A lot of people don’t realize that doing all of this can help them get the healthcare they need for a more affordable price,” explains Kullgren.
The bottom line: HDHPs are not for everybody. Make sure to choose the type of insurance plan that works best for your health needs and budget.
Frequently asked questions
What is a High Deductible Health Plan (HDHP)?
An HDHP is a health insurance plan with a higher deductible and lower monthly premium than traditional plans. For 2026, the IRS defines an HDHP as a plan with a minimum deductible of $1,700 for individual coverage or $3,400 for family coverage.4
Who should consider an HDHP?
HDHPs tend to work best for people who are healthy, don’t need much medical care besides yearly checkups and have enough savings to cover a higher deductible if something unexpected comes up. People with an ongoing condition or who expect to need care often may do better with a plan that has a lower deductible, since they’ll likely use it up quickly.
What is the “Triple Tax Advantage” of an HSA?
An HSA paired with an HDHP gives you three tax breaks: the money you put in isn’t taxed, it grows tax-free if invested and you don’t pay taxes when you use it for medical costs. Money left in the account carries over each year instead of disappearing.4
Need help choosing a health plan? Call a licensed insurance agent at 1-855-607-1823 to discuss your options or explore plans online.
Meet the experts:
Jeffrey T. Kullgren, MD, MS, MPH, is an associate professor of health management and policy at the University of Michigan School of Public Health and a research scientist at the VA Center for Clinical Management Research in Ann Arbor, Michigan.
Peter Ubel, MD, is a physician and professor of business, public policy and medicine at Duke University’s Fuqua School of Management in Durham, North Carolina.
For informational purposes only. This information is compiled by UnitedHealthcare, and/or one of its affiliates, and does not diagnose problems or recommend specific treatment. Services and medical technologies referenced herein may not be covered under your plan. Please consult directly with your primary care physician if you need medical advice.
Sources:
1. Healthcare.gov. “When can you get health insurance?” Accessed June 8, 2026. Retrieved from https://www.healthcare.gov/quick-guide/dates-and-deadlines/
2. Healthcare.gov. “High Deductible Health Plan (HDHP).” Accessed June 8, 2026. Retrieved from https://www.healthcare.gov/glossary/high-deductible-health-plan/
3. Healthcare.gov. “Deductible.” Accessed June 8, 2026. Retrieved from https://www.healthcare.gov/glossary/deductible/
4. IRS. “Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans.” Accessed June 8, 2026. Retrieved from https://www.irs.gov/publications/p969
5. Healthcare.gov. “Preventive care benefits for adults.” Accessed June 8, 2026. Retrieved from https://www.healthcare.gov/preventive-care-adults/
6. Healthcare.gov. “Health Savings Account (HSA).” Accessed June 8, 2026. Retrieved from https://www.healthcare.gov/glossary/health-savings-account-hsa/
7. Healthcare.gov. “Understanding Health Savings Account-eligible plans.” Accessed June 8, 2026. Retrieved from https://www.healthcare.gov/high-deductible-health-plan/hdhp-hsa-work-together/
8. IRS. “Treasury, IRS provide guidance on new tax benefits for health savings account participants under the One, Big, Beautiful Bill.” December 9, 2025. Retrieved from https://www.irs.gov/newsroom/treasury-irs-provide-guidance-on-new-tax-benefits-for-health-savings-account-participants-under-the-one-big-beautiful-bill
9. Journal of General Internal Medicine. “Delay in Diabetes Diagnosis After High-Deductible Health Plan Enrollment: A Pre-Post Study with Control.” April 2026. Retrieved from https://pubmed.ncbi.nlm.nih.gov/40879883/
10. JAMA Network Open. “High-Deductible Health Plans and receipt of guideline-concordant care for adults with chronic illness.” April 30, 2025. Retrieved from https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2833325
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