Definition: A high deductible health plan is a plan with an annual deductible that is higher than the deductible in more traditional health plans. The term "high deductible health plan" is almost always used in the context of health savings accounts (HSAs). HSAs are a special kind of tax-advantaged savings account used to accumulate funds for medical expenses.
The U.S. Department of the Treasury has specified that in the 2008 tax year, a high deductible health plan must have an annual deductible of at least $1,100 for individuals and $2,200 for families. This annual deductible figure is indexed each year for inflation.
