What is a typical feature of a high-deductible health plan?

A high-deductible health plan is characterized by lower monthly premiums and higher out-of-pocket costs, which is a significant feature of this type of plan. This arrangement is designed to encourage individuals to take more responsibility for their healthcare spending, as they will pay more out-of-pocket for services until they reach their deductible. This can help lower the cost of insurance premiums overall, making it more affordable for those who do not expect to need extensive medical care.

The structure of high-deductible health plans aligns with the concept of consumer-driven healthcare, where members are incentivized to make informed choices regarding their healthcare services and costs. By requiring higher deductibles, these plans often attract healthier individuals who may be looking to save on premium costs and are willing to pay for routine care out-of-pocket.

Other options do not align with the fundamental characteristics of high-deductible health plans. For instance, higher premiums with low copayments (the second option) describe more traditional plans and are not typical of high-deductible plans. Guaranteed coverage for all medical expenses (the third option) misrepresents the nature of a high-deductible plan, as it emphasizes out-of-pocket expenses for the insured until the deductible is met. Finally, the notion of no