A health plan with higher deductibles than traditional plans, paired with HSA eligibility.
HDHPs trade higher deductibles (and lower premiums) for HSA eligibility. To qualify as an HDHP for HSA purposes, the plan must meet IRS minimum deductible and maximum out-of-pocket thresholds (adjusted annually).
HDHPs work well for healthy employees who rarely meet their deductible — the premium savings more than cover their typical care. They work less well for employees with chronic conditions or frequent care needs, who hit the deductible quickly.
PEOs typically offer multiple plan tiers including HDHPs as part of their menu.
A health plan with higher deductibles than traditional plans, paired with HSA eligibility.
HDHPs trade higher deductibles (and lower premiums) for HSA eligibility.
Most PEO buying decisions touch several related concepts at once. High-deductible health plan (HDHP) typically comes up alongside the other terms in this category. Closely related terms include Health Savings Account (HSA), Group health insurance.
This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.
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