The defining trade-off of an HDHP is characterized by its deductible level relative to premiums.

• A. Deductible and premiums both increase with plan quality.
• B. Deductible is lower with higher premiums.
• C. High deductible, lower monthly premiums.
• D. Deductible remains the same across all plans.

Answer: (C)

High-deductible health plans are defined by trading higher upfront costs for lower monthly payments. In these plans, you pay a higher deductible before insurance begins to cover most costs, but you benefit from lower premiums each month. This structure is often paired with a health savings account (HSA), which lets you save pretax dollars to cover the deductible and other qualified medical expenses. The key idea is the high deductible comes with lower monthly costs, rather than a guarantee of higher premiums or identical deductibles across plans.