2022 Key Enrollment Trends For High Deductible Health Plans | TechTarget (2024)

FAQs

What is the enrollment trend for HDHP? ›

In addition, HDHP enrollment fell in 32 states, with 13 states reporting HDHP enrollment numbers below 50% between the 2021 and 2022 plan year. Overall, the study said 54% of private sector workers in the U.S. were enrolled in HDHPs in 2022.

For calendar year 2022, a “high deductible health Page 2 2 plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not ...

HDHPs are popular because they have low monthly premiums. Because the premiums are lower than other health insurance plans, the deductible is higher. However, many HDHPs provide 100% in-network coverage for preventive services before you meet your deductible. This includes services such as physicals and vaccinations.

Employers are increasingly expanding their use of high-deductible health plans (HDHPs), and more adults in the United States obtained private health insurance from their employers.

While offering an HDHP to employees will likely result in savings for your business, it essentially pushes the costs onto the employee, especially if they're faced with a serious medical situation. However, many proponents of HDHPs argue that they're generally beneficial to both businesses and their team members.

Large medical expenses: Since HDHPs generally only cover preventive care, an accident or emergency could result in very high out-of-pocket costs. Future health risks: Because of the costs, you may refrain from visiting a physician, getting treatments, or purchasing prescriptions when they're not covered by your HDHP.

It Is More Expensive to Manage a Chronic Illness With an HDHP. A chronic illness, such as heart disease or diabetes, can be much more expensive to manage under an HDHP than a traditional health care plan. With these conditions, regular medications and health screenings may be required.

Per IRS guidelines in 2025, an HDHP is a health insurance plan with a deductible of at least $1,650 if you have an individual plan or a deductible of at least $3,300 if you have a family plan.

There is no 20% penalty on excess contributions. If you no longer are enrolled in an HDHP you are not eligible to make contributions to your HSA, but you may request withdrawals for qualified medical expenses.

What circ*mstances are best for a HDHP? ›

You're healthy and rarely seek medical care for illness or injury. You can afford to pay your deductible upfront or within 30 days of receiving a bill for that amount if a surprise medical expense comes up.

Pros. Lower monthly premiums: Most high-deductible health plans come with lower monthly premiums. If you anticipate only needing preventive care, which is covered at 100% under most plans when you stay in-network, then the lower premiums that often come with an HDHP may help you save money in the long run.

The size of your monthly premium impacts your deductible—typically, the lower the premium, the higher the deductible. Why does having a higher deductible lower your insurance premiums? Because you'd be taking on more costs if you actually need care, rather than paying more each month toward potential care.

When choosing between an HDHP and a PPO, consider your health status, expected medical needs, and financial situation. An HDHP may be a good option if you're generally healthy, while a PPO might be better for those needing frequent medical care.

If your medical expenses are generally low, you should definitely consider an HDHP. If you would benefit from reducing your taxable income by contributing to your HSA, you should consider an HDHP.

An HDHP is best for younger, healthier people who don't expect to need health care coverage except in the face of a serious health emergency. Wealthy individuals and families who can afford to pay the high deductible out of pocket and want the benefits of an HSA may benefit from HDHPs.

First, the upside: Lower deductible: We all want to save money where we can. And having a lower deductible means a PPO kicks in with help on medical expenses sooner, rather than later. Lower out-of-pocket maximum: The PPO typically has a lower maximum out-of-pocket cost than an HDHP.