Which statement about HDHP is true?

• A. It Excludes Preventive Care
• B. It Has a Low Deductible
• C. It Cannot Be Paired With a Savings Account
• D. It Provides Coverage For Medical Expenses With a High Deductible And A Health Savings Account

Answer: (D)

HDHP is defined by a high deductible health plan that can be paired with a Health Savings Account. This setup often means lower monthly premiums, but you pay more out of pocket before coverage kicks in. The Health Savings Account is a tax-advantaged savings vehicle you own; you contribute pre-tax dollars, the funds grow tax-free, and you can use them tax-free for qualified medical expenses. This combination is what makes the statement true: you get coverage for medical expenses, but with a high deductible, and you have an HSA to save for those costs. The other options don’t fit because the plan does not have a low deductible, preventive care is typically covered (often without paying toward the deductible under applicable rules), and these plans are specifically designed to be paired with an HSA.