A high-deductible health plan (HDHP) often comes with lower monthly premiums, which makes it an attractive option for individuals looking to save on upfront costs. However, the primary disadvantage of an HDHP is the higher out-of-pocket costs you are responsible for before the insurance starts covering your medical expenses. This means you need to pay a substantial amount out of pocket for most medical services until you meet your deductible.

While HDHPs can be a good choice for healthy individuals who rarely need medical care, they may not be the best option for someone who expects to need frequent medical attention. The savings on premiums can be offset by high out-of-pocket costs if you require regular treatment or have an unexpected medical emergency. An HDHP can also be paired with a Health Savings Account (HSA), allowing you to save money tax-free for qualified medical expenses.