What type of health plan is categorized as a High Deductible Health Plan?

A High Deductible Health Plan (HDHP) is defined primarily by its deductible amount, which must meet certain thresholds established by regulatory bodies. HDHPs are often paired with health savings accounts to allow for tax-advantaged savings for future healthcare expenses. This combination helps individuals lower their overall health care costs and provides financial incentives for them to manage their health care spending. Health Savings Accounts are specifically designed to complement high deductible health plans, allowing individuals to save and pay for qualified medical expenses with pre-tax dollars.

The other options represent different types of health plans or structures but are not categorized as HDHPs. Health Maintenance Organizations, Preferred Provider Organizations, and Exclusive Provider Organizations each have distinct features and do not inherently include the high deductible requirements seen in HDHPs. Understanding the characteristics of these plans is crucial in navigating insurance choices and options available to consumers.