What is a high deductible health plan (HDHP)?

The definition of an HDHP or high deductible health plan is a health insurance plan that has a higher deductible than usual, but lower premiums. This means you, the insured, pay the initial medical expenses usually set at $2,000 dollars or higher (though it can vary yearly) before the insurance begins to cover more medical expenses. This is often times referred to as “catastrophic coverage” since the deductibles are so high the plans are usually only used for emergency medical care and not simple routine care. Be careful because, if you have a $2,500 deductible you may be required to come up with that cash at a moment’s notice in a medical emergency.
The very low premiums are obviously a motivator. Because of the higher deductibles, and the fact the coverage is usually only used in “catastrophic” cases, the risk is lower for the insurance company. Less risks for them means lower premiums for you, and are therefore much more affordable for the average family that wants to be covered for those “emergency” situations. Catastrophic situations involving children naturally are a major concern to parents.
They are big news because of HSA or health savings accounts (not to be confused with HRAs that are similar but company owned). A health savings account is a medical savings account of which funds are not taxed by the federal government. Instead, all money is saved solely for expenses related to health. Talk about a tax advantage!
Another plus is the fact that the account’s funds add up year after year and are never forfeited just because they are not spent by a designated time period. In a Flexible Savings Account or FSA you must spend the money that year or risk losing it. Having an HDHP is usually required if you want to join in on the tax-advantaged health savings accounts (HSA).  http://healthcareatm.com/