Understanding High Deductible Health Plans
What is a high deductible health care plan?
A high deductible health plan allows you to save money on your premiums and save them in a Health Savings Account. While the premiums are lower, the out-of-pocket costs for specific health care can be higher. However, the money in the health savings account is tax-advantaged (Health Savings Account FAQ) and you can save for future health care costs with this tool.
Essentially, a high deductible health plan is a low premium health plan and a low deductible health plan is a high premium plan.
There is a lot of fine print, so feel free to reach out to HR@coloradocollege.edu to talk about your options.
Health Plan Terms
| Term |
Definition |
| Premium |
Your portion of the monthly insurance payment (CC pays an additional 80% of premiums for employees). |
| Deductible |
The amount that you pay out of pocket before insurance begins to covers costs. |
| Copay |
A set amount of money you pay for a particular service, such as $40 each time you see a specialist. These do not accrue against your deductible, but do count for your out-of-pocket max. |
| Coinsurance |
Payments you make for medical services after you’ve hit the deductible. Coinsurance is a percentage of the approved service cost, such as 20% of the cost of an office visit. |
| Out-of-pocket maximum |
How much you spend in a year before 100% of costs are covered by the plan. |
2025-2026 Medical Plan Rates
| Characteristics | PPO 25-26 Employee Premiums | HDHP 25-26 Premiums |
| In-network deductible | $750/$1,500 | $2,000/$4,000 |
| Out-of-network deductible | $1,500/$3,000 | $4,000/$8,000 |
| In-network coinsurance | 15% after deductible | 20% after deductible |
| In-network max out-of-pocket | $3,500/$7,000 | $4,000/$8,000 |
| Out-of-network max out-of-pocket | $7,000/$14,000 | $8,000/$16,000 |
| Preventative (in-network) | Paid at 100% | Paid at 100% |
| Employee | $163.12 | $112.56 |
| Employee + Spouse | $334.38 | $230.74 |
| Employee + Child(ren) | $301.76 | $208.22 |
| Employee + Family | $464.86 | $320.76 |
Savings plan differences
| Flexible Savings Account | Health Savings Account |
| Both plans let you save tax-free for qualified medical expenses | |
| Available with PPO plan | Available with High Deductible plan |
| Save a maximum of $3,300 | Saving a maximum of $4,300 per year for individual, $8,550 for a family |
| Doesn't roll over- you have to get the number just right | Rolls over- can continue to add over time for a "rainy day" fund. |
| Money is forfeited if you leave CC | You can keep it if you leave CC or retire |
Who might benefit from which plan?
CC is not able to give tax advice, but in general, you might benefit from the different plans if:
| PPO (Low Deductible) | High Deductible |
| You see a doctor frequently for a chronic condition | You're healthy and rarely seek medical care for illness or injury |
| You take multiple prescription drugs, or one that's very expensive | You can afford to pay your deductible upfront or within 30 days of received a bill for that amount if a medical surprise comes up. |
| You or your children play sports, especially those with a high risk of injury. | You have the means to make significant contributions to your HSA. |
| You can't afford the high deductible. | You are interested in an HSA to save or invest money. |
| You think you might need significant out-of-network care. |