Would You Bet $7,000 on Your

Health This Year?

When it comes to health insurance, High Deductible Health Plans, or HDHPs, often stand out for one major reason: lower monthly premiums. But are these plans truly worth the hype?

Before jumping in, it is important to understand the trade-offs. So, ask yourself this: would you bet more than $7,000 on staying healthy this year?

Let’s take a closer look at what is at stake.

What Defines an HDHP in 2025?

For 2025, an HDHP is defined as any health plan with a deductible of at least $1,650 for an individual and a maximum out-of-pocket limit of $8,050. This means that before your insurance starts covering the majority of your medical costs, you could be paying thousands of dollars out of pocket for doctor visits, prescriptions, tests, or emergencies.

Why HDHPs Can Still Be a Smart Move

Despite the risk, HDHPs can offer financial advantages, especially for individuals who use healthcare services infrequently.

Let’s say you are comparing two plans:

HDHP Monthly Premium: $300
Traditional PPO Monthly Premium: $550
Annual Premium Savings: $3,000

That $3,000 could be redirected into a Health Savings Account (HSA) a tool with several key tax benefits:

Contributions are tax-deductible
Funds grow tax-free
Withdrawals for qualified medical expenses are tax-free

According to the Employee Benefit Research Institute, individuals who consistently contribute to their HSA for ten years can accumulate more than $15,000. That makes an HSA a valuable long-term resource not only for today’s expenses but also for healthcare costs during retirement.

But Here’s the Catch

The gamble becomes more real when unexpected health issues arise. A 2023 KFF Health Tracking Poll found that four in ten adults delayed or skipped medical care due to cost concerns. For those with an HDHP and little to no HSA balance, this delay can be risky—and expensive.

Is an HDHP Right for You?

You may be a good candidate for an HDHP if:

You are young and healthy, and rarely visit the doctor
You have enough in savings to cover the deductible if needed
You want to grow an HSA as a future healthcare fund

You might want to reconsider if:

You have chronic health conditions or require ongoing medications
You have dependents who need regular care
Covering $7,000+ bill would create financial hardship

The Bottom Line

HDHPs are not inherently good or bad. The key is finding a plan that matches your health needs and financial situation. Lower monthly premiums can be appealing, but they are only part of the equation.