Which option accurately reflects the cost-sharing pattern commonly associated with an HDHP?

• A. Low deductible, high annual costs.
• B. Moderate deductible, moderate premiums.
• C. No deductible with zero premiums.
• D. High deductible, lower monthly premiums.

Answer: (D)

In an HDHP, you take on a higher upfront deductible, so you pay more out of pocket before the plan starts paying for most services. To balance this, monthly premiums are typically lower than for other plans. After you meet the deductible, you still share costs with the insurer through coinsurance until you reach the out-of-pocket maximum, at which point the plan covers 100% of covered services. This combination—high deductible with lower monthly costs and ongoing cost-sharing after meeting the deductible—best describes the HDHP pattern. The other patterns don’t fit because they imply either lower upfront costs with higher ongoing payments, or no deductible with no premiums, which isn’t how HDHPs are designed.