Finding the "best health plan" can often be difficult, as the same plan will not be the best for all people or all families. The American health care market has broadened in recent years with the addition of options like PPOs and self-directed plans to the standard catalog of HMOs. In addition, health discount plans have sprung up, and new health legislation by the Federal government is set to alter the way in which some health care business is conducted. One option for those that are looking for an alternative to a traditional health care plan is a high deductible health plan. This kind of plan features a number of benefits, but before purchasing one it is crucial to assess if it will be the most effective type.

In order to assess if a high deductible plan is right for an individual or family, it is worth knowing what sets it apart from other plans. As its name states, this kind of plan will have a much higher deductible than traditional plans - currently, an individual plan must have a minimum of a $1,200 annual deductible and a family plan must have one of $2,400 to be recognized as "high deductible". This higher deductible cost means a much lower monthly premium cost, however, and for those that do not use their health care insurance often, it can be a cost savings rather than a cost increase.

A high deductible health plan also allows clients access to a health savings account, which works just like a bank account except that funds inside it can only be used to pay for approved health expenses. These can be anything from prescription medications to doctor's office visits or trips to the hospital. All deposits made to the account are tax-free, and medical expenses paid for out of the account are tax deductible. In combination, a high deductible health plan and a health savings account can make for an effective combination.

This kind of plan can often be the best health plan for an individual or family that is able to contribute regularly to a health spending account and does not mind managing their own health care spending. The benefit of true insurance will still exist, but behind a large deductible, which means it will only make sense to use when absolutely necessary. For families that have regular and recurring medical bills of significant size, this kind of plan may not be the best health plan, as it can leave them at a deficit, but for many, high deductible plans and HSAs have proven to be extremely effective in delivering care and managing finances.