An HDHP is a High Deductible Health Plan. It is like a traditional health insurance plan, although it usually offers a lower premium; however, you must pay higher deductible costs before the plan begins to pay for your health care.
An HDHP can be combined with a Health Savings Account (HSA). That allows you to pay for certain qualified health care expenses with funds you’ve set aside in your tax-free HSA.
An HDHP is sometimes referred to as an HSA-eligible health plan.
An HSA may earn interest or other earnings, which are not taxable. HSAs are available through banks, credit unions, and other financial institutions.