What Are the High-Deductible Health Plan (HDHP) Limits for 2025?
Key takeaways:
High-deductible health plans (HDHPs) are known for having high deductibles in exchange for lower monthly premiums.
For 2025, an HDHP is any plan with a deductible of at least $1,650 for an individual or $3,300 for a family.
The maximum out-of-pocket expenses for HDHPs in 2025 are $8,300 for an individual and $16,600 for a family.
If you’re thinking about enrolling in a high-deductible health plan (HDHP), you should understand how this type of insurance works and become familiar with the annual limits. The federal government sets minimum deductible and maximum out-of-pocket expense amounts for HDHPs every year. These amounts will give you a better idea of your potential out-of-pocket costs for a variety of services, from seeing a healthcare professional to having surgery.
Below, we break down how an HDHP works and the limits you need to know about for 2025.
What is a high-deductible health plan?
An HDHP is a type of health insurance plan that typically comes with higher deductibles than traditional insurance plans. With an HDHP, you’ll have to pay more money out of pocket before your insurance company pays for qualified medical expenses. For example, if you need an MRI or CT scan, you’ll have to cover the costs if you haven’t reached your annual deductible. But you’ll likely pay less money in premiums every month.
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Certain preventive care services are covered before you meet your HDHP deductible. This means you do not have to meet your deductible before you can take advantage of all your insurance benefits.
Some preventative care screenings may only be covered if you’re of a certain age or have a specific medical condition. But, in general, these preventive care services are usually covered even before an HDHP deductible is met:
Physical therapy for adults over 64 to prevent falls
Hepatitis C screenings for adults younger than 80
You can also pair your HDHP with a health savings account (HSA), which can help save you money on healthcare expenses. You’ll be able to use your tax-free HSA dollars to pay for qualified medical expenses that are not covered by your insurance plan.
What are the maximum and minimum deductible amounts for an HDHP in 2025?
As mentioned, the federal government sets certain spending amounts for HDHPs every year. The following table shows the HDHP minimum deductibles and maximum out-of-pocket expenses for 2025 and 2024.
High-deductible health plan requirements | 2025 | 2024 |
Minimum deductible for an individual | $1,650 | $1,600 |
Minimum deductible for a family | $3,300 | $3,200 |
Out-of-pocket expenses maximum for an individual | $8,300 | $8,050 |
Out-of-pocket expenses maximum for a family | $16,600 | $16,100 |
Source: Healthcare.gov
The HDHP limits shown above apply to in-network services. Deductibles, coinsurance, and copayments all count toward the annual maximum for out-of-pocket expenses.
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What are the HSA limits for 2025?
Your annual HSA contribution limit depends on the number of months you were HSA eligible. If you meet the requirements of the last-month rule, you may be able to contribute the maximum amount to your HSA even if you were not eligible the entire year.
The inflation-adjusted HSA contribution limits for 2025 are up from 2024. The below table shows the increased contribution limits for 2025.
2025 maximum contribution limit for HSAs | Individual coverage | Family coverage |
People under 55 | $4,300 | $8,550 |
People 55 and over | $5,300 | $9,550 |
Should I choose a high-deductible health plan?
You should consider the pros and cons of an HDHP before you enroll. Although an HDHP can grant you access to an HSA, for example, it may not be the best health insurance plan for your needs.
Here are some questions to help you determine if an HDHP is the best option for you:
How often do you go to see healthcare professionals?
How much do you expect to spend on medical expenses for the year?
Do you have a chronic condition?
Do you plan to become pregnant anytime soon?
Are you able to cover medical expenses on your own before you meet your deductible?
If you rarely go to healthcare professionals, you may want to consider an HDHP. Just keep in mind that, if you have a medical emergency, you’ll have to pay for care out of pocket until you reach your annual deductible. It’s important to consider both your financial situation and healthcare needs before signing up for an HDHP.
What are the benefits of contributing to an HSA if I have a high-deductible health plan?
One of the key features of an HDHP is the ability to pair it with an HSA. Between 2007 and 2017, the percentage of adults under age 65 who enrolled in HDHPs with HSAs jumped from roughly 4% to 19%.
Here are some benefits of contributing to an HSA:
Pretax contributions: You can contribute pretax dollars to your HSA. Your employer can automatically withdraw money through payroll deductions before taxes are taken out of your paycheck. Or, if you’re self-employed, you can claim a deduction when you file your taxes.
Tax-deferred growth: You don’t have to pay taxes on any growth or interest accrued by your account. So you can invest your money in assets that are allowed by your HSA custodian and give your money a chance to grow without worrying about an annual tax bill.
Tax-free withdrawals: You can withdraw money from your account at any time to pay for qualified medical expenses. As long as your expenses meet IRS guidelines, you won’t have to pay taxes on distributions.
Automatic carryover: Unlike with a flexible spending account (FSA), you don’t have to worry about losing your unused HSA funds at the end of the year. Any remaining dollars in your HSA carry over at the start of every year.
No penalties after age 65: You can withdraw money from your HSA for any reason penalty-free after you turn 65. This means you can use your HSA to pay for nonqualified expenses without worrying about penalties. Though, you will still have to pay taxes on funds used for nonqualified expenses.
The bottom line
Before you enroll in a high-deductible health plan (HDHP), you should review the minimum deductible and maximum out-of-pocket expense amounts for the year. These amounts typically change from year to year because of inflation. For 2025, for example, the HDHP limits increased.
It’s also important to know the annual HDHP limits to better understand how much you may have to spend out of pocket before your insurance will pay for covered services.
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References
Cohen, R. A., et al. (2018). High-deductible health plan enrollment among adults aged 18-64 with employment-based insurance coverage. NCHS Data Brief.
HealthCare.gov. (n.d.). High deductible health plan (HDHP).
HealthCare.gov. (n.d.). Preventive care benefits for adults.
Internal Revenue Service. (2022). Revenue procedure 2022-24.
Internal Revenue Service. (2023). Publication 502: Medical and dental expenses (including the health coverage tax credit) for use in preparing 2023 returns.
Internal Revenue Service. (2024). Publication 969 (2023), health savings accounts and other tax-favored health plans.
