What is a characteristic of a high deductible health care plan?

A high deductible health plan is characterized by low monthly premiums coupled with higher out-of-pocket costs for medical expenses until the deductible is met. This structure allows individuals to save on monthly premiums, making health insurance more affordable on a regular basis. However, it places a greater financial burden on the insured when they need medical care, as they are responsible for covering all costs up to the deductible amount before insurance starts to pay.

This type of plan is often utilized by individuals who are generally healthy and do not anticipate needing extensive medical services, as they can benefit from the lower premium costs while accepting the risk of higher costs in the event of unexpected medical needs. This contrasts with plans featuring high premiums and lower out-of-pocket costs or arrangements that include provisions like balance billing or unlimited maximum expenses, which are not typical characteristics of high deductible plans.