A high-deductible health plan (HDHP) is a health insurance

Health insurance

Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...

 plan with lower premiums and higher deductible

Deductible

In an insurance policy, the deductible is the amount of expenses that must be paid out of pocket before an insurer will pay any expenses. It is normally quoted as a fixed quantity and is a part of most policies covering losses to the policy holder. The deductible must be paid by the insured,...

s than a traditional health plan. Being covered by an HDHP is also a requirement for having a health savings account

Health savings account

A health savings account is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan . The funds contributed to an account are not subject to federal income tax at the time of deposit. Unlike a flexible spending account...

. Some HDHP plans also offer additional "wellness" benefits, provided before a deductible is paid. High-deductible health plans are a form of catastrophic coverage

Catastrophic illness

A catastrophic illness is a severe illness requiring prolonged hospitalization or recovery. Examples would include coma, cancer, leukemia, heart attack or stroke. These illnesses usually involve high costs for hospitals, doctors and medicines and may incapacitate the person from working, creating a...

.

In the United States

In the U.S.

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 participating in a "qualified" HDHP is a requirement for health savings accounts and other tax-advantaged programs. As of 2010, HDHPs are plans with a minimum deductible of $1,200 per year for self-only coverage and $2,400 for self-and-family coverage. The maximum amount out-of-pocket limit for HDHPs is $5,950 for self-only coverage and $11,900 for self-and-family coverage. (However, according to the instructions for IRS form 8889, "this limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit is reached.") The Internal Revenue Service

Internal Revenue Service

The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...

 released the 2010 amounts on May 15, 2009, which will be modified each year to reflect the change in cost of living.

Year	Minimum deductible (single)	Minimum deductible (family)	Maximum out-of-pocket (single)	Maximum out-of-pocket (family)
2009	$1,150	$2,300	$5,800	$11,600
2010	$1,200	$2,400	$5,950	$11,900
2011	$1,200	$2,400	$5,950	$11,900