12.4. High-Deductible Health Insurance Plans

High-deductible health insurance plans are exactly that: insurance plans where the yearly deductible, that is, the amount you pay out of pocket for your health care before your plan pays, is high. The higher the deductible you're willing to pay, the lower your premium. If you're healthy as a horse and don't spend much on health care, you can save some big bucks with a plan like this. The amount you pay for covered health care expenses is capped by the IRS at $5,950 if you're single ($11,900 for a family). That's a lot of moola, which is one reason you'll usually see these plans paired with health savings accounts (HSAs), which you'll learn about shortly.

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Note:

Some high-deductible health plans offer preventive care with a lower or no deductible. Preventive care includes physicals, prenatal and well-baby visits, immunizations, and health screenings for cancer, vision, hearing loss, and other conditions.

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