When buying health insurance, we all want to choose the best plan for our needs. One plan worth considering is the high-deductible health plan (HDHP). It is also sometimes called a consumer-driven health plan (CDHP). The HSA-qualified HDHP allows you to enroll in a Health Savings Account (HSA).

When using the HSA-qualified plan, you must pay your medical costs before your health plan does. The only exception is when using your coverage for preventive care. Here’s an example. With a PPO and an HMO, you typically have a copay when you visit a doctor. Any extra covered medical services that occur from that doctor visit would then be paid by your health plan. With an HDHP, you must pay medical costs up front to reach your deductible amount before the health plan starts paying its part of covered medical expenses.

In an average year, if your health journey usually only involves visiting a doctor for an annual exam, a well-woman exam and for a nasty cold, an HSA-qualified HDHP may make economic sense for you.  You’ll pay a lower monthly premium in exchange for a higher amount out of pocket before your insurance starts paying.

What you get with an HDHP?

HDHPs are designed to encourage consumers to become actively involved in their health care decisions. With an HDHP, you:

1. Make cost-effective health care decisions according to your budget
2. Select health services and manage your own fitness and wellness
3. Choose your health care provider
4. Get access to a tax-friendly account to help pay your expenses

What is an HSA and what do you get with it?

High-deductible health coverage often pairs with a health savings account (HSA). The account can be used to help meet the annual deductible. With an HSA you:

1. Get a pre-tax account that you contribute to. The money is then used to pay for qualified medical expenses set by the Internal Revenue Service.
2. Invest and earn interest on the money in your pre-tax account (this money never expires). You can take it with you if you change jobs.
3. May receive contributions from your employer which makes these savings accounts cheaper for you.

The idea is that when you and your employer contribute to the HSA, you will have greater reason to watch the amount you spend on health care. You’ll spend less on doctor visits, medical tests, prescription drugs and other medical services. You will also save money by taking care of these preventive services up front. Doing routine lower cost screenings has been linked to lower follow-up costs. Finding out about health issues when they are much further along can spiral into more money spent on prescriptions, hospital stays and more.

A perk of HDHP plans is there is a large set of medical providers and services that are in your network. It’s often the same broad network of doctors available in a PPO. Because all networks are NOT the same, it’s important to make sure all your doctors and services are in your network. While an HDHP allows you to use providers not in your network, your out-of-pocket costs will be much higher.

To make sure your doctors are in network, you can go online to find care at bcbsxx.com.  You may also get help finding providers and lower costs for any MRIs or CT scans by calling the number on your member ID card.

In summary, a HDHP offers these advantages:

• Your plan is eligible for a pre-tax savings account for qualified medical expenses. You can contribute as much or as little as you like to the account, up to the IRS annual maximum.
• Triple tax savings means you save taxes on your contributions, your interest earnings are never taxed, and distributions are tax-free if you use them for qualified medical expenses.
• Your HSA never expires and goes with you wherever you go, even when you retire.
• Studies show your spending on health care goes down.
• You take a more active part in your health care decisions.
• You have lower monthly premiums.
• You get access to a broad network of providers (doctors, hospitals, testing facilities).

If you decide the network of doctors and the price are right for you, you may choose to buy an HDHP during the next open enrollment period. Once you’re a member, you can log in to or sign up for your member account online or through the BCBSIL App. There you can find details about your health plan and search for in-network doctors.

Choosing the right health insurance coverage for you and your family is a big decision. An HDHP may be the right choice to help you be in the driver’s seat of your health care costs.