Consider a High Deductible Health Plan
Find out if an HDHP may be right for you.
Consider a High Deductible Health Plan
Find out if an HDHP may be right for you.
Learn how an HDHP and a non-HDHP can meet the needs of different people.
The Aetna High Deductible Health Plan (HDHP) is a type of medical plan that combines quality medical coverage with an account that your employer contributes to. You then use that account to help pay your costs, such as the deductible and your share of eligible health care expenses.
As with other plans, the HDHP requires you to meet a deductible each year, then share in the cost of your care. HDHP plans also offer the same provider network, services and program features as the conventional (non-HDHP) version of the same plan.
As the name says, an HDHP has a higher deductible — but you’ll pay a lower premium. That means you’ll have less deducted from your paycheck each pay period.
How the HDHP works
- Until you meet the in-network deductible, you pay 100% of your health care expenses, including covered prescription drugs.
- Once you meet the deductible, you pay a percentage of the covered expenses and Aetna pays their portion until you meet the out-of-pocket maximum for your plan.
- Once you meet the out-of-pocket maximum, in-network covered services are covered by the plan at 100% for the rest of the year.
- The deductible is waived on drugs on the Preventive Medicine List.
Depending on your employee type, once you are enrolled in the HDHP, you will have access to a tax-favored savings account that will help you save and plan for future health care expenses.
Two great reasons to consider an HDHP
- You’ll pay 23% less in premiums.
The HDHP has the lowest premium cost of all plan options. You can put the savings into a Health Savings Account (HSA) if you have one.
- You can have an HSA or HRA to help with out-of-pocket health care costs.
If you qualify for an HSA or a Health Reimbursement Account (HRA), your NAF employer will contribute $500 (employee-only coverage) or $1,000 (family coverage) to your HSA at the start of the year. You can also contribute, up to the IRS limits. Your pretax contributions save you money on income taxes, and there’s no tax on interest, investment earnings and withdrawals. Note: Active employees are offered an FSA, but you can’t have an FSA if you have an HDHP with an HSA. Learn more about the HSA or HRA.
Here’s what the numbers looked like for 2024:
| Coverage level | 2024 annual premium savings with HDHP | 2024 employer contribution to an HSA or HRA |
|---|---|---|
| Employee only | $682 saved | $500 deposited |
| Employee + spouse | $1,575 saved | $1,000 deposited |
| Employee + child(ren) | $1,316 saved | $1,000 deposited |
| Employee + family | $2,087 saved | $1,000 deposited |
Is an HDHP right for you?
Consider which of these plans feels like a good fit for you.
Why Curtis chose an HDHP plan
- Lower premium cost, so you’ll pay less out of your paycheck each pay period
- Higher deductible, so you’ll pay more out of pocket before benefits coverage starts
- Coverage for non-preventive services starts after you meet your deductible.
“I want as little as possible deducted from my paycheck.”
Curtis is young, single and currently has few health care expenses. Usually, he only goes to the doctor for a physical, vaccines and other preventive care. He wants to be able to put away money for future health care needs, so he’s interested in having an HSA account. And he likes the idea of paying the lowest premium cost. The HDHP will give him a lower payroll deduction while still providing a safety net if the unexpected happens. And with his employee-only coverage, the $500 contribution from his NAF employer will help, too.
Why Vivian chose a conventional (non-HDHP) plan
- Higher premium cost, so you’ll pay more out of your paycheck each pay period
- Lower deductible, so benefits coverage starts sooner
- Copays apply for certain services, such as in-network office visits to primary care doctors and specialists, and covered prescription drugs
“I don’t like surprises. I want to be prepared for anything.”
Vivian is a planner. She likes to know her health plan will have her back no matter what. She’d rather pay more out of her paycheck than be up against the full cost of a health care visit or service if she hasn’t met her deductible. The lower deductible and copays of the Aetna Choice® POS II plan make it the better choice for her. She used ALEX, the DoD’s online interactive benefits counselor, to help her make the decision. ALEX asked her a few specific questions and then provided a comparison and cost analysis — just for her — of HDHP and non-HDHP plans. This helped her feel confident in her decision.