What type of health plan combines a high deductible with a savings account to managed out-of-pocket costs?

The correct answer, which refers to a health plan that combines a high deductible with a savings account to manage out-of-pocket costs, is a Consumer Driven Health Plan (CDHP).

CDHPs are designed to give consumers more control over their healthcare choices and expenditures. They generally include high deductible health plans paired with either Health Savings Accounts (HSAs) or Health Reimbursement Arrangements (HRAs). The high deductible incentivizes individuals to become more cost-conscious regarding their healthcare services, while the associated savings account allows them to save money tax-free to cover eligible medical expenses, thus helping to manage out-of-pocket costs more effectively. This structure encourages individuals to think critically about their healthcare spending and can lead to more informed healthcare decisions.

In contrast, Health Reimbursement Arrangements (HRAs) are employer-funded accounts that reimburse employees for incurred medical expenses, but they do not typically come with high deductible insurance plans. Flexible Spending Accounts (FSAs) allow employees to set aside money pre-tax for medical expenses, but they are not specifically tied to high deductible plans like CDHPs are. Medicare Part D offers prescription drug coverage for Medicare beneficiaries and does not concern out-of-pocket costs in the framework of high deductible health plans.