Many Americans, especially those in good health, accept higher health insurance deductibles, required for High Deductible Health Plans (HDHPs) in exchange for the immediate cash-flow benefits of lower coverage premiums.
HDHPs also offer the opportunity to set up health savings accounts, or HSAs. Money in this tax-favored account is used to pay higher deductible costs and can be used for post-employment health expenses.
The deductible amounts that qualify for HDHP treatment are adjusted annually for inflation. The IRS recently issued Revenue Procedure 23-23 detailing these new HDHP amounts for the 2024 tax year as follows:
| High Deductible Health Plan types | 2023 Limits | 2024 Limits |
| Minimum health plan deductible, single coverage |
$1,500 | $1,600 |
| Minimum health plan deductible, family coverage |
$3,000 | $3,200 |
| Maximum out-of-pocket expenditures, single coverage |
$7,500 | $8,050 |
| Maximum out-of-pocket expenditures, family coverage |
$15,000 | $16,100 |