High-deductible plans tout lower monthly premiums, as compared to traditional insurance.
In 2016 the average annual premium for employer-sponsored health insurance was $6,800 for single coverage in a preferred provider organization (PPO), according to data from the Kaiser Family Foundation.
However, the average annual premium for a high-deductible health plan available at work was $5,762, Kaiser found.
There's a trade-off for the lower cost of coverage: You are responsible for saving the amount of money you need to meet a higher deductible.
Under a high-deductible plan, employees can use a tax-advantaged health savings account (HSA) to cover qualified medical costs. These plans must have an annual deductible of at least $1,300 for self-only coverage or $2,600 for families, according to the Internal Revenue Service.
Out-of-pocket expenses each year may not exceed $6,550 for individuals or $13,100 for families.