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What is a high-deductible health plan (HDHP)?

High-deductible health plans are insurance policies that have a higher than average deductible (the amount paid for health expenses each year before an insurance plan covers costs). They also have annual limits on how much has to be paid out-of-pocket in the form of co-payments or co-insurance fees. For current annual limits and out-of-pocket expenses, see “How do I know if my health plan qualifies me for an HSA?” or visit the IRS website.

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