Why might a person choose an HDHP?

Choosing a High Deductible Health Plan (HDHP) often appeals to individuals seeking lower monthly premiums while accepting a higher deductible. This choice can be particularly beneficial for those who anticipate minimal healthcare costs throughout the year or who are generally healthy and do not require frequent medical visits.

By opting for lower premiums, individuals can save money on their health insurance costs, which can be redirected toward other expenses or savings. However, it is essential for individuals to remain aware that they will need to pay a higher out-of-pocket amount before their insurance coverage kicks in. This structure works well for those who want to manage their financial risk and are comfortable with the trade-off between lower monthly costs and potentially higher out-of-pocket costs in case of significant medical events.

On the other hand, the other options do not accurately describe the characteristics of an HDHP. While eliminating all out-of-pocket expenses is desirable, it contradicts the nature of HDHPs which are designed to have higher deductibles. Unlimited coverage without a deductible is not a feature of HDHPs, as they inherently include deductibles. Lastly, the option focusing solely on covering preventive services does not reflect the comprehensive nature of HDHPs, which can cover a variety of healthcare expenses once the deductible is