Which of the following describes a high deductible health plan?

A high deductible health plan (HDHP) is specifically designed to have lower monthly premiums compared to traditional health insurance plans, but it comes with a higher deductible that must be met before most benefits kick in. This structure makes HDHPs particularly appealing to individuals who are generally healthy and do not anticipate needing frequent medical care, as they can save on premium costs while being protected against significant medical expenses if they do occur. People who rarely need medical care may find this type of plan suitable because they are less likely to need to meet the high deductible frequently and can maintain savings from lower premiums.

The other options do not accurately reflect the characteristics of a high deductible health plan. For instance, these plans generally come with higher deductibles and, as a result, tend to have a higher out-of-pocket maximum compared to traditional plans. Additionally, while HDHPs can offer flexibility in choosing providers, they may not allow unrestricted services without considering the deductible requirement; many services may still be subject to the high deductible before insurance benefits apply.