Which type of insurance plan generally has higher deductibles and lower premiums?

High-deductible health plans are designed to offer lower premiums by shifting a greater portion of the financial responsibility onto the insured through higher deductibles. This means that individuals pay less each month for coverage but will be responsible for more out-of-pocket costs when accessing health care services until they reach their deductible. These plans encourage individuals to engage in more cost-conscious behaviors regarding their health care usage, as they are incentivized to shop around for lower-cost services and providers.

In the context of health insurance, this configuration is often beneficial for healthy individuals who do not expect to need extensive medical care. These plans can also be paired with Health Savings Accounts (HSAs), allowing users to save money tax-free for medical expenses, further aligning with the concept of high deductibles.