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Health Care Reform:

Health Insurance & Affordable Care Act

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High-deductible health plan (HDHP)

A high-deductible health plan (HDHP) has a higher deductible than most health plans, but it also has a lower premium. The deductible is the amount you must pay yourself before your health plan pays its part for health care services. A premium is the amount you pay every month for your health plan. That means with an HDHP, you pay less each month, but when you need health care, you generally have to pay more out of pocket before you get help covering your medical costs from the insurance company.

If you have employer based health insurance, you can combine an HDHP with a health reimbursement arrangement (HRA) or with a health savings account (HSA). With these savings plans, you contribute money from your paycheck before taxes. You use that money to pay for health costs not covered by insurance, such as copays, coinsurance, or dental care. Your employer may also add to your savings. You can use a health savings account to pay for health care as long as your deductible is at least $1,300 for one adult or $2,600 for a family.

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