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July 18, 2008, Newsletter Issue #137: High Deductible Health Plans

1

Tip of the Week

A high deductible health plan (HDHP), also known as a catastrophic health insurance plan, is a relatively inexpensive health plan that has a high deductible ranging from $1,000 to thousands of dollars. The premiums for HDHPs are usually considerably lower than those for traditional health insurance plans. You must have a HDHP in order to have a health savings account (HSA). To qualify for an HSA, your deductible must be at least $1,000 for single-person coverage or $2,000 for family coverage.



2

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