Deductible/High-Deductible Health Plan

A deductible is an amount that someone with health insurance (or other insurance) is required to pay for most services before the insurance provider begins to cover the cost. Deductibles are generally set over an annual period. For example, if an enrollee’s health care plan’s annual deductible is $1,500, the enrollee is responsible for 100 percent of eligible health care expenses until bills for those expenses total $1,500.

In general, plans with higher deductibles have lower monthly premiums. The IRS defines any plan with a deductible of at least $1,650 for an individual or $3,300 for a family as a high deductible health plan (for 2025). High deductible health plans are often combined with health savings accounts that allow you to pay for medical expenses with money free from federal taxes. A high deductible health plan’s total yearly out-of-pocket expenses (including deductibles, copayments, and coinsurance) can’t be more than $8,300 for an individual or $16,600 for a family (as of 2025).