What percentage of Americans have high deductible plans?
Asked by: Austin Schinner | Last update: January 20, 2026Score: 4.5/5 (38 votes)
What percentage of employers offer HDHP?
PERCENTAGE OF FIRMS OFFERING HDHP/HRAS AND HSA-QUALIFIED HDHPS. Twenty-five percent of firms offering health benefits offer an HDHP/HRA, an HSA-qualified HDHP, or both. Among firms offering health benefits, 4% offer an HDHP/HRA and 22% offer an HSA-qualified HDHP [Figure 8.1].
Are high deductible plans becoming more common?
Employers are increasingly expanding their use of high-deductible health plans (HDHPs), and more adults in the United States obtained private health insurance from their employers.
Why is it not a great idea to have a high deductible?
Large medical expenses: Since HDHPs generally only cover preventive care, an accident or emergency could result in very high out-of-pocket costs. Future health risks: Because of the costs, you may refrain from visiting a physician, getting treatments, or purchasing prescriptions when they're not covered by your HDHP.
Is it worth it to have a high-deductible health plan?
HDHP is great for generally healthy people who don't take medications and don't visit the doctor often. It'll cover you for very serious illnesses and you can just save the money you would have otherwise spent for the occasional doctor's visit.
High-Deductible Health Plans, Explained
What is the downside of a high deductible?
The primary disadvantages of a high-deductible health plan include the high out-of-pocket costs and the potential reluctance to seek medical care due to upfront expenses. While HDHPs have lower premiums, individuals may face financial strain if they need medical services before meeting the deductible.
What is the 12 month rule for HSA?
It means you must remain eligible for the HSA until December 31 of the following year. The only exceptions are death or disability. If you violate the testing period requirement, your ineligible contributions become taxable income.
Who should not use a high deductible health plan?
A chronic illness, such as heart disease or diabetes, can be much more expensive to manage under an HDHP than a traditional health care plan. With these conditions, regular medications and health screenings may be required. These costs may quickly add up until deductibles are finally met.
Is PPO ever better than HDHP?
HDHPs can be a good form of insurance for the young and healthy — especially if your employer offers you HSA contributions. But for anyone with significant medical expenses, an upcoming surgery, or a serious health condition, a PPO could be a better fit because of the lower deductible.
Is $5000 a high deductible health plan?
For families, the deductible has to be at least $2,700, with a $13,500 max out-of-pocket. Many high deductible plans actually have a much higher deductible ($5,000-$7,000).
What percentage of Americans have a high deductible plan?
Enrollment in HDHP/SOs has increased over the past decade, from 20% of covered workers in 2013 to 29% in 2023 [Figure 8.4]. Six percent of covered workers are enrolled in HDHP/HRAs and 24% of covered workers are enrolled in HSA-qualified HDHPs in 2023.
Do most doctors accept HDHP?
Results: About 10.8% (152/1396) of physicians in our population chose the HDHP.
Why do companies push high deductible health plans?
Although a high deductible may sound like a bad thing, in some cases, it makes financial sense. By opting for a higher deductible, employees can secure lower monthly premiums. This makes coverage more affordable, and it can be particularly appealing to young workers who do not expect to have major health issues.
What is the average cost of a high-deductible health plan?
On average, single Americans with a high-deductible health plan (HDHP) have an annual premium of $7,170, while those with a more traditional type of health plan (like an HMO or PPO) have an average premium of $8,162. For families, the premium comparison is $21,079 with an HDHP versus $23,003 without.
Who is a good candidate for an HDHP plan?
If you're generally healthy and don't have medical expenses beyond annual physicals and preventive screenings, an HDHP could save you several hundred dollars or more a year.
How popular is the HDHP?
In 2023, 49.7% of private-sector employees were enrolled in HDHPs. That's down from 53.6% in 2022, though those are still some of the highest enrollment rates by year. Enrollment peaked at 55.7% in 2021. Before 2022 and 2023, HDHP enrollment had last declined in 2013.
Do doctors prefer HMO or PPO?
HMO plans might involve more bureaucracy and can limit doctors' ability to practice medicine as they see fit due to stricter guidelines on treatment protocols. So just as with patients, providers who prefer a greater degree of flexibility tend to prefer PPO plans.
Who is HDHP best for?
An HDHP is best for younger, healthier people who don't expect to need health care coverage except in the face of a serious health emergency. Wealthy individuals and families who can afford to pay the high deductible out of pocket and want the benefits of an HSA may benefit from HDHPs.
Do copays count towards deductible?
No. Copays and coinsurance don't count toward your deductible. Only the amount you pay for health care services (like the medical bill you receive) count toward your plan's deductible.
What is the upside to having a high deductible?
This means you'll pay less each month for insurance and more out-of-pocket when you receive care. The upside? Preventive care is still covered at 100 percent on these plans. Once you hit your deductible, your health plan will start to cover the cost of your other care.
What is the main disadvantage of choosing a high deductible?
When a person chooses high deductibles, then it means he will have to pay a huge sum of amount for himself to get care before his insurance begins to fulfill the policy. The policyholder would face a major disadvantage if he selects a deductible on an insurance policy and has to pay a huge sum from his/her pocket.
Do you get a tax break for having a high-deductible health plan?
Leverage the tax breaks.
The HSA that comes with an HDHP offers a potential triple tax advantage2, that helps you save on taxes: Your HSA contributions are made pre-tax. Interest and any investment earnings in the account are tax-free. Your payments for qualified medical expenses are tax-free.
What is the downside of an HSA?
Drawbacks of HSAs include tax penalties for nonmedical expenses before age 65, and contributions made to the HSA within six months of applying for Social Security benefits may be subject to penalties. HSAs have fewer limitations and more tax advantages than flexible spending accounts (FSAs).
What is considered a high-deductible health plan in 2024?
For calendar year 2024, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,600 for self-only coverage or $3,200 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not ...
Can HSA be used for dental?
Yes, you can use a health savings account (HSA) or flexible spending account (FSA) for dental expenses.