A High-deductible health plan (HDHP) is when you will pay lower premiums but will be more liable for medical expenses. If your deductible is $2,000 and your bill is $5000 then the insurance company would not cover you until you pay $2,000 and then they would pay the $3,000 to finalize the payment.

Participating in a HDHP is a requirement for obtaining a health savings account (HSA) and other tax advantaged programs. The benefits are determined by the health care needs of the individual or family. If you are in a position to have the money available to pay the required deductible when medical expenses arise should also be taken into account.

Beware the deductible generally applies to all expenses like doctors office visitations, prescriptions. With some plans preventive care will not count toward meeting the deductible. Most plans however will cover preventive services such as routine office visitations before you have met the deductible.