Choosing a health insurance plan during open enrollment can feel overwhelming. You’re weighing premiums, deductibles, copays, and coverage options — all while trying to figure out what’s best for both your health and your wallet.

One common option is a High Deductible Health Plan (HDHP). These plans often come with lower monthly premiums, which can make them attractive, but they also require paying more out-of-pocket before your insurance kicks in. HDHPs can be a smart choice for some, especially when paired with a health savings account, which provides flexibility in how you save and pay for care. The key is understanding whether this type of plan fits your health needs and budget.

Here are five practical questions to ask yourself before choosing an HDHP.

How Often Do You Use Healthcare Services?

When deciding between an HDHP and a traditional plan, start by looking at how often you visit the doctor or need medical care. If you rarely use healthcare services, an HDHP could save you money through lower monthly premiums while still covering preventive care — like annual checkups, screenings, and vaccines — before you meet your deductible.

However, if you:

• Visit the doctor frequently

• Take ongoing prescriptions

• Have a chronic condition

• Expect specialist care this year

…then a traditional plan (like a PPO) may be the better fit. PPOs usually have higher monthly premiums but offer lower deductibles and predictable copays, making it easier to budget for care. For people who are generally healthy, an HDHP not only keeps premiums lower but also unlocks access to a health savings account.

Can You Afford a Large Bill Before Meeting Your Deductible?

With an HDHP, you’ll usually pay less each month but more upfront when you need care. These plans require you to cover the full cost of most non-preventive services until you’ve spent enough to reach your deductible, so it’s important to make sure your budget can handle unexpected bills.

If you don’t have savings or an emergency fund, an HDHP could create financial strain in the event of an accident, surgery, or hospital stay. But if you have some savings set aside — or use an HSA to build a cushion — the trade-off can work in your favor, giving you lower monthly premiums today and a practical way to manage larger costs if they come up.

And starting in 2026, the One Big Beautiful Bill (OBBB) will expand HSA eligibility to more ACA Bronze and Catastrophic plans. This change will give more people the ability to pair lower-cost premiums with the savings flexibility of an HSA, making HDHPs an even more accessible option in the future — especially for those thinking ahead about Medicare and long-term healthcare costs.

Does Your Employer Contribute to an HSA?

Employer contributions can significantly increase the value of an HDHP by helping offset the higher deductible. Even modest deposits provide extra peace of mind for unexpected costs and act like a built-in savings boost. This added support can sometimes make an HDHP the more cost-effective choice compared to a higher-premium plan. If your employer offers this benefit, it’s worth factoring into your decision when comparing plans.

Do You Prefer Predictable Copays or More Spending Control?

Traditional plans (like PPOs) give you fixed copays and lower deductibles, which makes budgeting simple — but you’ll pay more each month whether you use care or not.

HDHPs flip the trade-off: lower monthly premiums, and you only pay more when you actually need care. For people who are generally healthy, this often means saving money over the course of the year. HDHPs also give you more control — you can shop around for services, decide when to spend, and if the plan is HSA-eligible, you have an extra way to prepare for out-of-pocket costs.

If you want predictable bills each month, a PPO may feel safer. But if you’d rather keep premiums low and have more control over how you spend on care, an HDHP is usually the better fit.

Are You Planning For Future Healthcare Costs?

If you’re thinking ahead, an HDHP can be more than just a way to lower your monthly premiums — it can also be part of a long-term savings strategy. Many HDHPs are HSA-eligible, which gives you a way to set money aside for future healthcare needs and build a cushion that grows with you. If you’d like to understand how HSAs work in more detail, our guide to health savings accounts is a good place to start.

This makes HDHPs especially appealing if you’re healthy now but want to prepare for the costs you might face later in life. Instead of paying higher premiums every month for care you may not use today, you can save more of that money for when you’ll need it most.

Finding the Right Fit

Choosing between an HDHP and a traditional plan can feel complicated, but asking the right questions makes the decision clearer. The goal isn’t just to pick a plan that works for today, but one that also supports your long-term financial and healthcare needs. By weighing your health, budget, and future priorities, you’ll be better prepared to choose the plan that gives you confidence moving forward.

If you’ve already chosen a high-deductible health plan and want to take advantage of the savings that come with an HSA, you can sign up for a Lively HSA here.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.