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High Deductible Health Plan Basics

Understand HDHP trade-offs

HDHP basics: lower premiums, higher deductibles/out-of-pocket max, eligibility for HSAs, and the need to plan cash for care; good for low expected use and HSA saving, less so for high ongoing costs.

Know Costs

Higher deductible/OOP, lower premiums; plan cash buffer.

Use HSA

Contribute tax-advantaged funds; invest if long horizon.

Match to Situation

Better for low expected use; compare to PPO/other plans.

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