In an HDHP, the relationship between the deductible and monthly premiums is best described as:

• A. Lower deductible with higher premiums.
• B. High deductible, lower monthly premiums.
• C. High deductible with higher monthly premiums.
• D. Low deductible and lower premiums.

Answer: (B)

HDHPs are designed so you pay less each month in premiums by having a higher deductible. The trade-off is that you cover more upfront costs out of pocket before the insurance starts paying, until you reach the deductible. Once that threshold is met, you may pay coinsurance until you hit the out-of-pocket maximum, after which the plan pays the rest. This setup often pairs with a Health Savings Account, which lets you save tax-advantaged funds to cover the deductible and other eligible expenses. So the relationship is best described as a high deductible with lower monthly premiums.